Controversy emerged after the publishing of the first Weiss’ Cryptocurrency Ratings in which Bitcoin was given a Fair (C+) far below many of the cryptocurrencies.
In comparison, Ethereum scored a B, Steem B-. Other cryptocurrencies such as EOS, Cardano, NEO scored better than Bitcoin. Weiss released a rating of 74 coins that represent over 80 percent of the market cap for all currencies. Members will also receive weekly updates on grades. The company will also issue commentary regarding critical upgrades, downgrades, and trends.
Although Bitcoin faired insecurity and widespread adoption excellently, the significant drawbacks remain transaction delays and high transaction costs according to Weiss. That is why Weiss gave it a poor score than some cryptocurrencies.
Weiss press release said,
“Despite intense ongoing efforts that are achieving some initial success, Bitcoin has no immediate mechanism for promptly upgrading its software code.”
Some Bitcoin proponents called it an unfair rating that is based on a misunderstanding of the core value proposition of cryptocurrency. Weiss uses four metrics to rate cryptocurrencies. These include risk, reward, technology, and fundamental aspects of adoption and security. However, some Bitcoin proponents say the rating seems to overvalue transaction capacity, and undervalue protocol stability, safety, and decentralization.
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It is unclear why Bitcoin received such as poor rating than projects such as Cardano that are only a white paper, writes Darryn Pollock of CoinTelegraph.
“Nevermind that Bitcoin has the largest network effects, greatest brand recognition and highest market cap of any digital currency.”
The author says that poor rating for Bitcoin is not surprising given that most of the people and institutions that have significant financial interests around the world are not pleasing with Bitcoin successes. These have a lot to lose if Bitcoin succeeds.
Weiss also experienced attacks on its website, purportedly from Bitcoin supporters from Korea. It is unclear if this influencing the rating.
Another concern among Bitcoin supporters is that no cryptocurrency was awarding an A rating.
Weiss said no cryptocurrency would get the rating due to the eminent price volatility all over.
“That’s the number one source of misunderstanding between our model’s results. And also the grades that most folks in the cryptocurrency space expected. That high price volatility! That’s the main reason we have no A’s on our list right now.”