Two weeks ago the rating agency Weiss improved its rating for Bitcoin. Now Bitcoin has the status A-. Weiss Rating is the only agency that rates crypto currencies like Bitcoin.
Why does Bitcoin get a better rating?
Weiss Crypto Ratings explained that the overall rating has improved to A- because some fundamentals have changed. The agency also expects the price to develop positively due to the block halving.
Is Weiss neutral?
A tweet from the company about Bitcoin seems very positive for an “independent” rating agency. There the company wrote that the price could rise to over 11,426 euros. At the same time Weiss also warned of a correction.
What does the rating agency do?
Weiss Ratings was founded in 1971 and began assessing crypto-currencies on January 24, 2018. For this purpose they launched a website called Weiss Cryptocurrency Ratings. The idea behind it is that every week a rating of the largest and most important cryptocurrencies is published.
The coins get a rating between A and F. A is the best rating and F the worst. The rating agency distinguishes between three categories.
General rating: According to Weiss, this is a “comprehensive, balanced overview of all factors, based on a complex algorithm and therefore not an average”. When deciding on an investment, “investors must primarily focus on this overall assessment”.
Market performance: This category is divided into risk and return. By risk, the company understands the disadvantages that may arise from price volatility and the extent of price declines. In the case of profit, it is examined whether the profit potential is mainly based on the price dynamics and what return investors have achieved recently. Weiss considers these two factors to be sufficient to provide investors with short-term advice.
Technology/ Assumption: These two categories examine the possibilities of the software. The technology takes into account factors such as the degree of anonymity, capability or flexibility, code, energy efficiency, scalability, and cooperation with other block chains. The focus is on actual performance, for example in terms of transaction speed, network security and decentralization of mining. Adoption by developers, companies and the public also play a role in this category.