I listened to an podcast put together by the Weiss Rating Group. I will admit that it was a bit of a commercial for there investing plan but it was rather informative.
Earlier in the week, Weiss moved STEEM from a B- to a B in their ratings. This is a rather high mark considering B+ was the highest.
Before going any further, I must state that the Weiss ratings are very fluid and they are for investors. This is the audience they are appealing to. Therefore, much of the criteria is based upon the timing and recent price action of a token.
Overall, they use 7 criteria to arrive at their results....
A) Governance-the ability to upgrade itself without hard forks from disputes.
B) Speed of transactions
C) Cost of transactions
D) Things you can do with the smart contracts
E) How decentralized the currency is
F) Security
G) Adoption
From this list, it is rather easy to see how STEEM scored so well.
This blockchain went through 19 forks and is still running a single chain. That says a great deal about the governance. We know the speed and zero cost are not beaten by any blockchain. Since STEEM is a third generation blockchain, the smart contracts can do whatever is desired. Security is unmatched with a decentralized exchange and a key account recovery system.
The areas where STEEM might fall a bit short is in the area of decentralization since the tokens are still overwhelmingly in the hands of a handful of players. What is interesting is that this is not marked down as much as one would think. Bitcoin, for example, was marked down since 70% of the hashrate is in the hand of 4 or 5 miners.
We also see STEEM with a low adoption rate which is not surprising since it is a relatively new currency and blockchain.
STEEM is also on their top 3 "recommend" list. The reason for that is because they view STEEM as a social media platform as much as a cryptocurrency. This has created the situation where STEEM is a working platform that is actually used by people.
The other two tokens on this list are EOS and Cardano.
One final point that I took note of from the call.
Bitshares is on their do not buy list since they basically consider it EOS version 1.0. Thus, if you are going to buy Bitshares, just buy EOS since it has a lot more than BTS.
This is the same logic applied to Bitcoin Cash and Bitcoin Gold (the other two on the do not buy list are Electroneum and Verticon).
For many of us, this is mixed news. I know there are a lot of people on here who hold both STEEM and BTS. On one hand, this was a terrific call because of STEEM being recommended. Of course, the other hand is BTS put on the do not buy list.
Obviously, Weiss is not the end all and be all. However, they are an independent third party who is trying to rate cryptocurrencies in an unbiased manner. For STEEM, this might help in getting it some attention since there is a lot going on with this blockchain. It must be said that most of the projected applications and upgrades do not figure into the ratings at all. They only quantify the criteria above to determine a risk/reward assessment. Things outside of those variables will not figure into the results.
I believe we are going to see STEEM on the radar of other entities covering this industry in the next few months. There is a lot of noise about to be made by this blockchain.
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