Name Price24H (%)
Bitcoin (BTC)
$10,876.93
0.90%
Ethereum (ETH)
$365.85
2.45%
XRP (XRP)
$0.242784
0.49%
Litecoin (LTC)
$48.33
4.68%
Weiss Ratings Ranks Bitcoin A-.
NEWS

Weiss Ratings Ranks Bitcoin A-.

Weiss Ratings, a highly reputed American investment data provider established in 1971, has given Bitcoin (BTC), the world’s flagship cryptocurrency an A- (excellent) rating ahead of the Bitcoin halving event scheduled for May this year. Weiss Ratings says Bitcoin’s improving fundamentals coupled with its positive price movement makes it an excellent investment vehicle, according to a tweet on February 7, 2020.

Today the 420,000th block of bitcoin’s blockchain was mined, bringing about the first reduction in the mining reward since 2012. Computer processing power around the world combines to secure bitcoin’s network and verify transactions; the reward they get for mining a single block is now 12.5 bitcoin, falling from 25.0. It will fall again to 6.25 sometime in 2020. Crypto-enthusiasts around the world are celebrating bitcoin’s maturity with halving parties. Instead of around 3,600 newly minted bitcoin becoming available on a day-to day basis, this number is cut in half to 1,800. A lot of the recent appreciation in bitcoin against fiat currencies has been attributed to the halving event, as it is essentially a reduction in the supply of the crypto-currency.  We will now look at what bitcoin’s block reward halving really means.

This event has only ever occurred once before when, on November 28, 2012, the miners’ reward dropped from 50 to 25 bitcoin per block. bitcoin is decentralized meaning that no central authority controls its supply. The inventor (or inventors) designed the process of ‘mining’ bitcoin to be similar to the extraction of gold; a decreasing rate of supply and a finite amount in circulation over a given period of time. The halving is akin to digging deeper for gold and obtaining less and less as the reserves are depleted. Furthermore, since bitcoin is decentralized, unlike national currencies and central banks, the distributed network issues bitcoin and follows the rule-based policy ingrained in its design

READ  Russia to Use Blockchain-Powered Voting System for Constitution Amendment

Bitcoin Gets A- from Weiss Ratings 

While 2019 was a decent year for bitcoin (BTC) in terms of price movement, as compared to the crypto winter of 2018 when the price of bitcoin crashed to nearly $5k, it appears 2020 may just be the year of another bitcoin moonshot if recent developments are anything to go by.

In the latest development, Weiss ratings, a heavyweight research firm that claims to be focused on providing investors with highly accurate data to enable them to make informed investment decisions, has given Bitcoin an A- rating, categorizing the king of blockchain-based crypto as an excellent investment vehicle.

Per the words of the U.S. Department of Defence (DoD), the need for a distributed ledger technology-enabled messaging and transaction platform is of critical level. Notably, the $9.5 million award is the first and one of the largest SBIR Phase III for blockchain technology.

Notably, an SBIR Phase III non-compete contract is categorized as a Basic Ordering Agreement with a Delivery Order. SIMBA Chain has already finished Phases of an earlier SBIR award, during which the entity developed a decentralized messaging and transaction platform mapped to DoD constructs and tested a working prototype. In Phase III of the contract, SIMBA Chain will aim to commercialize the platform and ensure its full-scale implementation.

Per sources close to the matter, SIMBA Chain’s DLT platform will meet the organization’s immediate need of NAVWAR, communication system hardware and software, modernization and sustainment capabilities for both land and sea assets that play a role in undersea systems communication by connecting the Blockchain Fabric from seabed to space.

READ  Brad Garlinghouse Insights on Ripple's Progress and Libra's Slow Walk

Weiss Ratings revealed via a tweet that it decided to rank BTC an A- due to a number of great factors, including the digital currency’s strong fundamentals and positive price action ahead of the much-anticipated bitcoin halving event.

As reported , earlier these year Weiss Ratings received quite a heavy bashing from a section of the cryptoverse for saying that Cardanao (ADA) is clearly superior to EOS (EOS).

However, despite the mixed reactions, one thing that remains certain is that the upcoming Bitcoin halving event which will slash the rate at which new bitcoins are mined by 50 percent, i.e from the current  12.5 BTC per block to 6.5 coins; will significantly boost the price of Bitcoin.

The price of Bitcoin (BTC) succeeded in touching and surpassing the $10k price region during the weekend. However, at press time, the price of Bitcoin has crashed to $9,795 and it remains to be seen whether the previous surge to $10k was just a flash in the pan.

Leave a Comment

Your email address will not be published. Required fields are marked *