Weiss Ratings explains why it considers Bitcoin barely above average as an investment

Bitcoin is the best-known of the new breed of cryptocurrencies, but Weiss Ratings of Palm Beach Gardens says individual investors should be cautious. It gives the virtual money a grade of just C+.

“It may have the strongest brand and the early-mover advantage, but others have the late-comer advantage — the ability to hit the ground running with legacy challenges mostly resolved and with advanced features,” Weiss says in a new analysis of Bitcoin.

Related: Former Wall Street economist on Bitcoin: “I’d rather buy tulips”

How Weiss breaks down Bitcoin on four measures:

Investment Reward. “Despite rapid price appreciation in 2017, Bitcoin has been losing ground to competing altcoins and currently ranks low,” Weiss says.

Investment Risk. “Given the extreme volatility of recent months, it should come as no surprise that Bitcoin does not achieve a stellar grade on this index either,” Weiss says.

Fundamentals. “Bitcoin does well in terms of network security, usage, developer participation and user popularity,” Weiss says. “However, it underperforms in two areas: (1) network capacity, as evidenced by a meager four transactions per second and fees of about $10 each, plus (2) centralization, with five large mining pools controlling nearly three-quarters of the hashrate.”

Technology. “Bitcoin does well with regards to the security of its blockchain, but loses points due to deficiencies related to scalability and sustainability,” Weiss says. “It does not have adequate governance. It cannot easily upgrade or adapt. And despite some workarounds, it’s mostly stuck in technology that’s falling behind the times.”

Weiss likes the cryptocurrency Ethereum better -- that altcoin earned a B. However, Weiss gives no virtual currency an A. Access to the Weiss Ratings’ full report card on dozens of cryptocurrencies costs $468 a year.

Reader Comments ...

Next Up in

Condo Act does not restrict nonresident owners from serving on panel

Question: I am an original condo owner (46 years) in our building. I am originally from New York. In the past six years, we have become Florida residents, spending six months per year in Florida. Our community needs a lot of work, and last year I invited several neighbors to my home to talk about what we could do to improve the look of the community...
PIP lawsuits explode to record
PIP lawsuits explode to record

A no-fault car insurance system that was supposed to reduce lawsuits in Florida has instead produced a record mountain of more than 60,000 in 2017, a new report shows. That represents a stunning rise of close to 50 percent in one year, according to data from The Florida Justice Reform Institute, a group that says it fights against wasteful litigation...
After price cut, former New York Yankee’s mansion listed at $14 million
After price cut, former New York Yankee’s mansion listed at $14 million

Former New York Yankees pitcher Jeff Nelson has cut his price and hired a new agent to market his mansion in Jupiter. Nelson now is asking $14 million for the 11,000-square-foot crib along the Intracoastal Waterway at Admirals Cove. Billy Nash of The Keyes Co. is the new listing agent of the 1.1-acre estate. “It was listed last year at $19 million...
Should you talk about your pay? Career experts weigh in
Should you talk about your pay? Career experts weigh in

Even with nearly every cultural taboo thrown to the wind− from discussing sexual orientation to politics; one last conversational taboo still exist among Americans − how much we get paid. "These days, it's okay to talk about the troubles we're having with our children or even our marriages," noted one blogger from PayScale...
BB&T recovering after 'technical issue' left customers without access to accounts, cash
BB&T recovering after 'technical issue' left customers without access to accounts, cash

Millions of BB&T customers were locked out of their accounts Thursday night and Friday morning due to an outage that bank officials said was caused by a "technical issue." The interruption of services was first reported Thursday night and appeared to last until just before noon Friday. “At this time, many of our services...
More Stories