Crypto research firm Weiss Ratings has made a controversial call about the future of leading digital currencies bitcoin and Ethereum. The company has also identified a handful of coins like IOTA (MIOTA), NEO, XRP and Cardano (ADA) as absolute bargains.
Weiss, which was founded in 1971, starting publishing ratings for various cryptocurrencies in January 2018. They wanted to make it easier for investors to choose cryptocurrency investments.
Surprisingly, bitcoin received a rating of just “C +” at the start of the year. Weiss blamed lengthy transaction times, high transaction costs and a lack of a mechanism to upgrade the software code. Ethereum came away better in the early evaluation, receiving a “B” rating, which is the top score.
In a highly publicized tweet, Weiss Ratings now refers to bitcoin as a “one-trick pony,” saying it expects BTC to lose 50% of its market share to No. 2 Ethereum over the next half-decade. They argue Ethereum offers a higher number of use cases given its ability to create decentralized apps (dApps) and smart contracts, unlike Bitcoin. Weiss Ratings also says Ethereum is “equipped with superior blockchain technology” and proclaimed that “the limit of using ETH is the sky itself.”
Meanwhile, there is also ambiguity surrounding the Weiss Ratings tweet storm. For instance, they offer no price forecast for BTC or ETH. It is also unclear whether the use of “market share” refers to the number of users, the proportion of market capitalization or something else.
ETH Wallets vs BTC Wallets
Based on data from bitinfocharts, the number of active addresses for bitcoin and Ethereum wallets is not that far apart. Currently, there are more than 500,000 active bitcoin addresses, while Ethereum boasts 300,000 active addresses. Most of the comments in the Twitter thread were therefore very skeptical.
For years, there was hope that Ethereum could overtake Bitcoin in terms of market capitalization, creating what’s been called a “flippening” in the order of the top coins. With bitcoin’s dominance currently hovering at more than 55% coupled with Ethereum’s share of the overall market at less than 11%, this goal seems to be a long way off.
#Bitcoin will lose 50% of its #cryptocurrency market share to #ETH within 5 years, due to it offering more uses and being backed with superior #blockchain technology. We completely agree – unlike #BTC, which is a one-trick pony, the limit of ETH’s application is sky itself.
— Weiss Ratings (@WeissRatings) September 18, 2018
Top 8 Altcoins
The ratings agency not only offered a look at bitcoin and Ethereum but also presented its picks for the top eight altcoins in the current market. Weiss Ratings identified the following coins as “absolute bargains” in the current market: IOTA, NEO, Ripple and Cardano. They also referred to Nano, Basic Attention Token (BAT), Stellar (XLM) and EOS as four other cryptocurrencies possessing great potential.
If you believe #crypto market will return to its former glory, the benchmark for a 10X gain, is a 90% retracement. As of today, here are a few of top-25 coins that are at or above a 90% pullback: #IOTA = 90%#NEO = 91%#XRP = 93%#ADA = 96%
These are absolute steals right now!
— Weiss Ratings (@WeissRatings) September 17, 2018