Questionable Weiss Rating Agency Retracts on Bitcoin and Ethereum Price Predictions After Criticisms
Despite Predictions of 50% Loss to Bitcoin, Weiss Backtracked After Criticism
Weiss is an agency that is known for its financial predictions, even though they have had experience in the past with being wrong. One of their recent claims has been that BTC would experience a loss of 50% of their market share, which would go to ETH instead. However, after experiencing contempt across the entire industry, they have rescinded their statement.
When Weiss Ratings first showed up, they were ready to take on the cryptocurrency world. With many ratings regarding blockchain projects, the company managed to reach their goal of getting some positive attention from the community. Since they seemed to act as if all publicity was a good thing, they have continued to throw out predictions with a level of confidence that only someone ignorant on the subject could feign.
On Twitter, Weiss posted,
“#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 the sky itself.
#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 Crypto Ratings (@WeissCrypto) September 18, 2018
The boldness in calling Bitcoin a “one-trick pony” is surprising, to say the least. The “trick” that they refer to is the fact that they have been able to maintain decentralized and censorship-resistant digital currency. Bitcoin has easily surpassed every single cryptocurrency in value and market cap to date, which has seemed to be a result of them being the pioneer of the industry.
Ethereum is decentralized as well, but even the strongest supporters of the currency would argue against the idea that it has “superior blockchain technology.” They still struggle to meet scalability requirements and the consistent congestion on the blockchain keeps it from the limits that Weiss Ratings says.
Once the company was called out for the errors in their Tweet, Weiss went back to Twitter in a new post. It said,
“In 5 yrs we see #ETH-LIKE platform dominating the market – not necessarily ETH. Hard to predict which project dominates, but we feel usefulness and flexibility of ETH will be the standard. We apologize for not being clear.”
Along with the actual tweet, there is a third-party article that was linked, which came from the founder of an Ethereum-based art project ICO.
When there are “experts” in the market that make predictions, like Weiss Ratings, they examine the changes in the market. However, the idea that ETH would start beating BTC cannot possibly be true, since each project has different performance and goals. The Bitcoin news website decided to report about some of Weiss’ drastically incorrect predictions and statements on privacy coins just last month.
The agency basically said that “efforts to discourage the usage of privacy coins for illicit activities would not hurt the crypto industry. Nor would it deny citizens protection from invasions of their privacy.”
Weiss Ratings seems to be following a similar path as CNBC’s price predictions, but with less consistency. Regardless of what Weiss decides to believe and state now, many investors should be cautious about believing them.