Bitcoin Crypto Rating

Bitcoin-Crypto-Rating

Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.

Bitcoin (BTC) Rating = 102/1,000 = 10.2%

Technology (0 to 300) = 17

  • Speed (0 to 50) = 1
    With 5 to 7 transactions per second, transactions speeds of 20 mins up to a few days and with regular backlogs of 50,000 stuck transactions, Bitcoin is one of the worst performers in the entire cryptocurrency industry.
    Bitcoin maximalist traders do not even use Bitcoin for exchange to exchange transfers any more!
  • Cost (0 to 50) = 1
    The cost of a transaction is one of the most expensive in all of blockchain with costs rising parabolically depending on network congestion.
  • Scalability (0 to 50) = 5
    The Bitcoin network itself is completely unscalable. External off chain solutions like the Lightning Network are not Bitcoin specific and as yet do not really work at all.
  • Reliability (0 to 50) = 5
    Regular instability, network congestion as well as occasional days long delays and astronomical fees make the network decidedly unreliable.
  • Environmental Impact (0 to 50) = 0
    Bitcoin is an unmitigated disaster. No matter how the Bitcoin Maxis try and spin it, the physical waste of mining rigs and the horrendous electricity wastes make BTC completely unfeasible and a toxic plague for our planet.
  • Decentralisation (0 to 50) = 5
    The Bitcoin network is controlled by a small few with Binance and a couple of Chinese mining pools recently publicly admitting they can “reorganise” the network at will. The size and impact of such a reorg would devastate BTC so they score 10 points for decentralisation only because we are probably still a couple of years away from such a major attack, though when China says go there’s nothing anyone can do to protect Bitcoin.
    Update: As of 2020 Bitcoin is more centralised than ever and with the upcoming “halving” of mining rewards this centralisation is only likely to increase even more with a 51% attack a real risk.

Security (-250 to 0) = -170

  • Reorg, 51% & Brute Force Attack (-100 to 0) = -90
    With China controlling Bitcoin there is a very real risk of attack.
  • Potential For Being Banned (-100 to 0) = -50
    Governments and regulators are likely to target privacy coins first but due to the huge environmental impact of Proof of Work coins like Bitcoin are in danger.
    Update: Governments can no longer turn a blind eye to the disastrous effects of POW mining. It looks like only a matter of time before this toxic industry is scrapped.
  • Network Vulnerabilities (-50 to 0) = -30
    Bitcoin is the oldest and largest cryptocurrency and as such there are enough groups with vested interests to keep the network secure for the moment. How long this remains the case is anybodys guess though.

Use Case (0 to 500) = 230

  • Initial Main Use Case (0 to 100) = 10
    Bitcoin was dreamed up as an electronic peer to peer currency. This has proven not to be feasible due to the poor technology, however enough people still believe in the value to keep this use case going.
    Update: during the great recession of 2020 less rather than more people have been flocking to Bitcoin due to it’s complete lack of usability.
  • Mainnet Live (0 to 200) = 200
    Full marks for having a working product live for many years now.
  • Additional Use Cases (0 to 100) = 0
    The “Store of Value” narrative is the new selling point. Bitcoin also has first to market advantage meaning most exchanges still use it as a base trading pair.
    Update: all additional ratings points removed as the Store of Value narrative proved completely false during the great crash of 2020. Only Gold has shown itself as a true store of value, Bitcoin is very far from being digital gold.
  • Additional Working Products (0 to 100) = 20
    We’ll be generous and award 10 points for the Lightning Network and 10 points for BitPay even though the LN doesn’t work as intended and BitPay have added other cryptocurrencies to their platform.

Core Team, Partnerships & Developers (0 to 200) = 25

  • Core Team & Developers (0 to 100) = 15
    Most of the initial developers have moved on to other things but due to the price and overall value, enough mining pools are vested enough to keep this thing trudging along.
    Update: more mining pools have gone belly up and Bitcoin is looking very frail.
  • Partnerships (0 to 100) = 10
    Giant financial corporations like Bakkt, Fidelity, Coinbase and Binance as well as some general companies are vested enough into Bitcoin to make sure the illusion of real world use carries on for now.
    Update: it has become clear that no company has any interest in Bitcoins long term future, only looking after their own back pocket.

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