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Weiss Ratings Report Shows a Nice Picture for Cryptos.

Weiss Ratings, a veteran firm dedicated to analyzing investments, published its latest update of the Weiss Cryptocurrency Rating on May 25, 2018.

Dr Martin Weiss. Founder of Weiss Ratings. Credit: Weiss RatingsDr Martin Weiss. Founder of Weiss Ratings

The publication is usually exclusive to paid customers. However, the latest report can be obtained for free after a mail subscription.

The Weiss Rating studies around 93 cryptos and rates them on a scale where A is the best and F is the worst.

In turn, each letter has three levels: Plus (+), Neutral and a Minus (-). This generates 18 levels of risk rating.

To obtain the final score, Weiss Ratings averages the scores of 4 different study areas. In an interview for CNBC, Martin Weiss explains:

“We break our model down into four sub-models, each one looking at a different aspect of these cryptocurrencies:

  • The first is a Risk Index, which gives investors an indication of how much downside potential there is.
  • The second, being the counterpart to that is our Reward index, which then looks at the potential return from many different perspectives.
  • Where we go into new territory is in our Technology Index, which look at the underlying source code and how robust it is, how flexible it is, how scalable it is.
  • And then finally, the fourth, and also important measure is what we call our Fundamental Index, which is about adoption and security.”

Weiss Ratings: It Is Impossible To Please Everybody

When Weiss Ratings first released its report earlier this year, Bitcoin received a C+ rating while Ethereum received a B-

In the last update, Bitcoin’s overall score was B-; Bitcoin Cash received a C-, Ethereum B- and Ethereum Classic C+.

on the other hand, The best-ranked cryptos (B) were Cardano, Decred, and EOS. There was no B+, let alone A.

The media have historically reported this level of high standards for decades. Reports from Barron’s and The New York Times back from 2002 and 1992 note the lack of A ratings in Weiss’ reports.

Ari Paul, chief investment officer at BlockTower Capital, is one of those critics. In an email sent to CNBC, Mr Paul was skeptical towards its model :

“Weiss’ cryptocurrency ratings are a great example of the ongoing institutionalization of the cryptocurrency industry and a healthy addition … Their rating of Bitcoin suggests a misunderstanding of the core value proposition of cryptocurrency, however, as they seem to overvalue transaction capacity, and undervalue protocol stability, security, and decentralization.”

Nevertheless, Mr. Weiss is aware that the results of his studies may generate this type of reaction, however, he assures that his firm’s levels of impartiality are higher than those of other prestigious competitors:

“Unlike Moody’s, Standard & Poor’s, Fitch, and A.M. Best, Weiss Ratings never accepts compensation of any kind from the companies or entities it rates. Its revenues are derived strictly from individual investors, consumers and other end users of its ratings.”

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The Case For A FedCoin Is Growing, and To Challenge Bitcoin (BTC)

If you cannot beat them, join them. This is an all too familiar popular phrase that is used as a general way of dealing with situations where you cannot control your oponent. In this case, the Federal Reserve of the United States might be destined to make a similar decision when it comes to dealing with Bitcoin (BTC) and the entire cryptocurrency industry.

Anyone who is knee deep in this crypto and blockchain industry understands and knows that both entities are the future of investing, payment settlement and so many possibilities on the blockchain. A former top official of the Federal Reserve has seen the proverbial light and is also echoing this sentiment.

Former Governor of the US Federal Reserve, Kevin Warsh, had this to say about crypto:

Most central banks have a view that these crypto-assets are clever, like guys in the garage did it and it’s kind of cool, or risky…to think about the Fed creating FedCoin, where we would bring legal activities into a digital coin. Not that it would supplant and replace cash, but it would be a pretty effective way when the next crisis happens for us to maybe conduct monetary policy

This is some good news given the already known news that Venezuela has led the way with the Petro and China is considering its own State backed crypto to counter the current influx of regular cryptocurencies in its economies that could threaten their valuable Yuan. State control is something that the Chinese government wants due to the current political system in the country. The Communist party is firm in its ways to protect the well being of its citizens and the nation in general.

One thing is for sure, once a FedCoin is considered, possible ways to back it would be through already present paper USD money, or the oil reserves in the country or even the Gold that everyone believes is in Fort Knox. A portion of the total FedCoin would be in circulation for the masses and possibly be used as legal tender. The Feds would then continue monitoring inflation and deflation like they would with regular fiat money. This would then challenge the King of Crypto – BTC – head on! Like two bulls in a fight.

In conclusion, the world is changing through crypto and blockchain. Any government that does not have a taskforce to investigate a way forward, will be left behind as the rest of the world evolves and benefits through the new technology.