Chinese authorities made their efforts in banning crypto activity in China. The reason for their decision is to prevent possible capital outflow and to curb money laundering.
But recently, China Center for Information Industry Development announced that they are going to rate cryptocurrencies. There are a good number of cryptocurrencies out there. With more than one thousand cryptocurrencies to choose from, you may not be able to know all of them. In fact, even those in the top ten may not mean that it’s a cryptocurrency that really has a practical use.
Digital currencies rated by China Center for Information Industry Development include Ethereum Classic, NEM, Dash, Ark, Komodo, Bitcoin, Ripple and many more.
Ethereum As the Best?
Ethereum was awarded 1st while Bitcoin was only ranked 13th out of 28 cryptocurrencies last May 17. In fact, after Ethereum, cryptocurrencies that followed were Steem, Lisk, NEO, and Komodo. The reason behind this ranking is that there are future plans by the Beijing’s Ministry of Industry and Information Technology to dwell on blockchain projects and crypto assets. Yes, despite their ban on crypto activities, China is already thinking ahead how it can maximize blockchain technology.
So who exactly made the rating? According to reports, “first-rate domestic experts and scholars” contributed to the ratings. The cryptocurrencies were judged according to technology, application, and innovation. And among those criteria, it was Ethereum that ranked the highest in all three. And it has echoed the first place rating conducted by Weiss’ earlier in January.
Ethereum was able to garner a total score of 129.4 while Bitcoin only received 88 which made the most popular cryptocurrency land in the 13th spot.
What Exactly Does it Mean for Bitcoin?
What exactly does it mean for Bitcoin? Based on the rating, it appears that Bitcoin is lacking in both “technology” and “application” criteria. However, Bitcoin was able to beat every other cryptocurrency in the “innovation” portion.
However, Twitter and commentators find it quite difficult to understand the logic behind China’s rating system. It created the same uproar when Weiss decided to give Bitcoin a C+.
Does it mean that there should be changes within the network? Is Bitcoin already lagging behind these days? Considering the way new cryptocurrencies present solutions present in Bitcoin, does Bitcoin really have something to prove to everyone else?
What Makes Ethereum Number One?
There are a good number of things that make Ethereum the number one cryptocurrency in the eyes of Chinese authorities and experts. Ethereum was able to provide a platform where people can create their own cryptocurrency. And also, Ethereum played a great role in the growing number of ICOs. But of course, this has its drawbacks. There are a number of ICOs that are now considered scams and regulators are after these entities. In fact, should ICOs be considered a security?
Bitcoin, on the other hand, has been suffering from lag time. And though it is a pioneer in the industry, could it be just a matter of time before altcoins take over? Or is there something wrong about the rating systems provided both by China and by Weiss last January?