The Weiss Cryptocurrency Ratings make a powerful statement on the legislative changes currently being made by the US government. Martin D. Weiss and Juan M. Villaverde wrote in the ratings that the steps taken by the officials of America indicate cryptocurrency will soon usurp the banking system.
Martin Weiss, who founded the Weiss Ratings agency in 1971 recently, also explained the three levels of significant value for the cryptocurrencies. He made this analysis to negate the comments made by industry baron and billionaire Warren Buffet.
The agency is known to provide ratings on almost all the financial institutions in the country including American insurance companies, stocks, credit unions, banks, ETFs and mutual funds which amounts to around 55,000 institutions in the country. Weiss began rating cryptocurrencies at the start of 2018 and its first report gave Ethereum (ETH) a B whereas Bitcoin (BTC) was given a C+.
Legislation Introduce Changes To Volcker Rule
The Volcker Rule restricts the power of corporations to invest in speculative investments for generating profit using the money of the customers. According to Weiss and Villaverde, the current US government is making changes in the Volcker Rule in such a way that it will loosen these restrictions for the companies. In their Weiss Ratings, the duo further added that the American companies have just posted their worst ever 100-day returns since 2000 which they believe indicate that cryptocurrencies are more or less on the threshold of taking over the banking systems soon.
According to Weiss, cryptocurrency is the ultimate solution to all the issues that the finance world is facing as it offers a much better alternative to the banking system. Weiss says, “Unless they adapt to the cryptocurrency revolution, it’s hard to imagine a world in which banks in their current form retain custody of people’s assets. And it’s easy to imagine one in which crypto platforms disrupt banks like Uber or Lyft disrupt taxis.”
Weiss Suggests Three Levels Of Significant Value For Cryptos
Weiss recently explained through a press release that virtual currencies offer value on three different levels. The first one is the Intrinsic Value in which the investors and users use the great computing power at their behest to effectively gain a share of a major DLT platform. The second is Exchange Value which is a proven quantity and is very much expected to grow and the third is Monetary System which considers selected cryptocurrencies having a potential to become a new digital monetary system offering more stability and less manipulation from the governments.