Juan M. Villaverde in his latest Weiss ratings report explains how Ethereum and EOS are crypto-commodities while drawing a reference to Petroleum and Real Estate respectively. Both of these sectors are immensely valuable, signifying the future growth of both the cryptocurrencies.
The world of crypto-commodities
In the latest Weiss Ratings report by Juan M. Villaverde, he talks about cryptocurrencies being more than just currencies. According to him, they are crypto commodities that has much more value than the regular currencies. Starting with bitcoin, he emphasizes on the need and importance of bitcoin which “was created to be digital, peer-to-peer money with no central authority.” “Moreover, the cryptocurrency that is outside the government control holds a strong appeal, especially in countries like Venezuela, Brazil, Zimbabwe, and Argentina among others that are going through hyperinflation or confiscation”.
He notes that Bitcoin primarily fulfills a single purpose of “transferring money from point A to point B.” However, with the entry of Ethereum in the crypto market, things “really got interesting”. Pointing out the fact that crypto newbies often miss the radical differences of Bitcoin and Ethereum, he states, “If Bitcoin is Like Digital Money, Ethereum is Like Digital Petroleum”.
Going with the petroleum analogy, it is the most widely traded commodity on earth and has more value than gold, silver or any other metal combined. The broad variety of its use-cases make it so valuable without which the “entire world would come to a screeching halt.” Similarly, “that’s why Ethereum and its cousins could also be very valuable. They are the fundamental component needed to power the internet of the future.”
The report goes to explain,
“On the Ethereum network, the Ether token is the gas that’s so essential to power the network — to make it run. Thus …Ether is more akin to a digital commodity with intrinsic value than a greenback or any kind of paper money.”
Unlike fiat money which has value by decree, digital assets like Ether have value because they are essential for network operation.
Also, read: Best Cryptocurrency to Invest Right Now, Weiss Rating says it All
Villaverde sees potential in the Ethereum but believes EOS to be far bigger and comprehensive as he writes, “EOS not only provides the fuel and the platform. It also provides the equivalent of the land, the buildings, and the highways.” Real Estate is one of the most prominent and lucrative industries that has great value in the real world. With real estate reference, he explains,
“unlike Ether, EOS isn’t used to paying fees. Instead, each EOS token represents a portion of bandwidth and memory that you quite literally own or rent in the global digital nation that EOS hopes to be.”
According to him, tokens like Ether and EOS aren’t meant to be cryptocurrencies, rather it is just a secondary side benefit. As for what will be their value, he puts this forward, “according to Cisco, the “Internet of Everything” is worth $19 trillion. The digital oil and real estate of the future will be worth many times more.”
Ethereum and EOS both have been pegged by experts as platforms that have huge potential. Currently, ETH is at $499 while EOS is sitting at $10.72.
Let us know your views on the Weiss Ratings’ analysis of Ethereum and EOS.
The post Weiss Rating Says “If Bitcoin is Digital Money, Then Ethereum is Petroleum & EOS Real Estate” appeared first on Coingape.
Written by Partyush Goyal @ https://coingape.com/weiss-rating-bitcoin-ethereum-eos-commodities/ June 16, 2018 Partyush Goyal