It Is Noted That Bitcoin Price Rises As First Cryptocurrency Ratings Are Released
Here we come up with a unique discussion on the cryptocurrency ratings. We make sure you have enough information on these prices and ratings. There are a lot of details to go into.
While considering the bitcoin price, it has limbered up slightly but still failed to break the $ 12,000 barrier as according to Coindesk’s index a single bitcoin could set you back by $ 11,222.71 which is an increase of 3.53% from its price. Hence it is found that the mostly sideways movement in bitcoin’s price occurred even after UBS Chairman Axel Weber reported to Bloomberg at the World Economic Forum where the bank will surely not offer bitcoin investing service to clients as government regulation of the cryptocurrency that might result in a massive correction and an implosion in its price.
Hereby as the gains for other cryptocurrencies outpaced that of bitcoin, it comes to be among the top 10 most traded cos, Stellar’s Lumens which was the biggest gainer rising by 26.13% to trade at $ 0,57. Hence it is here that the cryptocurrency shares technology with Ripple’s XRP as it might son be on payments processor Stripe’s network.
The Ratings For Cryptocurrencies
The fact that the volatility of cryptocurrency markets has stumped those of even the best analysts, the efforts are on to bring some science and method to the madness. Hereafter Florida based firm Weiss Ratings has released a rating assessment of cryptocurrencies thereby assigning letter grades to them. Thereby the bitcoin received a C+ grade whereas Ethereum the second most valuable currency received a B. it was quoted according to the firm that bitcoin has excellent security and widespread adoption.
Related to bitcoin’s use as an investment vehicle or as a medium of exchange it is not clear whether that adoption is successful. Hereby the industry data is sure to indicate that bitcoin comes to be struggling to gain traction as a medium of exchange. Therefore, it is according to the company’s press release none of the cryptocurrencies listed in the markets obtained an A grade. Here it is understandable given the market nascent nature.
Speaking about it there is the technology index that is presumably an assessment of a coin underlying blockchain and its future potential as the firm also uses finally a real test of the technology’s applications in the real world thereby making sure that people are using it and it works according to Weiss.
Thereafter it was claimed that it is a pretty broad set of criteria and most of it fails to provide clarity. It is especially important as the jury is still out on factors driving price movement in cryptocurrencies as the Outline published an article detailing a pump-and-dump scheme on a messaging platform. Hereby the reality test has also applications that take a long time to assess considering the industry’s nascent nature and it is unclear how the firm will thereby handle those technology prospects for the offshoots or the forks which are essentially using the same blockchain as their parent currency.
There are others in the industry with the same questions and as Jay Blaskey, the digital currency specialist at BitRA comments, it is odd that Weiss is touting the fact that they don’t take compensation for their services adding that it may not be as applicable for cryptocurrencies as it is for credit rating agencies. Even then it is only a start as according to Blaskey the ratings come as a sign of what is termed continued maturation for cryptocurrency markets. Furthermore, he said that he expects this to be the first of many more systems to come especially as more and more participants in the financial ecosystem integrate these assets into their business models.
Why Is Bitcoin Considered An Asset Or A Payment Network?
Here we present the relevant question that has since mystified analysts, investors, and the users of the cryptocurrency as it has also an extremely important bearing on factors driving its price movement and as Dan Ciotoli from the Bespoke Investment Group predicted that a price target of between $ 20,000 and $ 30,000. As Ciotoli told CNBC the driver that they think is going to bring bitcoin up is bitcoin denominated commerce adding that the success of Lightning Network comes to be a second layer to Bitcoin’s blockchain to enable commercial transaction which has a big role to play in that assessment. It is here that if the network fails Ciotoli’s price target falls to $ 5,000 and he has laid the money on bitcoin’s future as a payment network for daily transactions.
Hereby it is found that the team at Stripe which is a payment processor may not share Ciotoli’s assessment whereas the San Francisco based start-up has discontinued support for bitcoin identifying high transaction fees and price volatility as reasons for its decision. Thereby according to Tom Karlo the product manager at Stripe over the past year or two a block size limits have been reached as bitcoin has evolved to become better suited thereafter to be an asset rather than being a means of exchange. As stripe processes billions of dollars in payment processing volume so they know what they are talking about.
The Final Thoughts
It is finally found that there’s Visa which is the world’s largest payment processor and its CEO Alfred Kelly told CNBC that bitcoin’s price volatility made it unfit as a payment mechanism and instead he said he viewed the cryptocurrency as a speculative commodity.