Adding another feather to its already well-adorned hat, Bitcoin has been successful in achieving an upgraded “B” rating in the latest evaluation by Weiss Ratings agency. So that you know, Weiss is one of the most credible names when it comes to evaluation of cryptocurrencies and giving them a rating to help investors to make an informed decision. The previous rating given by the agency to the Bitcoin was “B-” and now based upon the new evaluation of parameters; the rating agency has changed Bitcoin’s rating from “B-” to “B”.
Factors of Evaluation:
There are a total number of four factors that the rating agency consider while giving a rating to the cryptocurrencies. These parameters include the adoption of cryptocurrency, the technology used by the cryptocurrency, the risk related to cryptocurrency, and the reward associated with the cryptocurrency. These four factors again combine to form two major parameters – risk/reward and technology/adoption. For the final rating, the average score of these two parameters is considered.
In the case of Bitcoin, the cryptocurrency has performed extremely well on the technology/adoption and has got a commendable ranking of “A”. However, it is on the risk/reward factor that has always conspired to drag down the rating of the largest cryptocurrency by market capitalization. It is interesting to note that the recent surge in the prices of Bitcoin has considerably improved the risk/reward factor which has ultimately reflected in the upgraded rating received by the digital coin. The new rating achieved by Bitcoin on risk/reward factor is “C-”, taking the combined rating on technology/adoption and risk/reward to “B”.