How the Rating of Bitcoin Compares to that of Fiat Currencies

Bitcoin is a virtual cryptocurrency and worldwide payment system. It is the first decentralized digital currency – the system works without a central repository or single administrator – and has been introduced in 2009. Bitcon has been recently rated for the first time, receiving a very high, five-star Resistance to Shocks (RtS) Rating. But how does that compare to the RtS ratings of the major fiat currencies such as the British Pound, the Yen and the Euro? Let us see what happened over the past four years. All currencies are priced with respect to the US Dollar.

As may be observed, the Bitcoin has a significantly less rugged, more stable and high rating than the other currencies. At the time of writing (December 10-th, 2017), the RtS ratings are as follows:

Bitcoin – 99.3% (five stars)

Pound – 78.8% (three stars)

Yen – 87.7% (four stars)

Euro – 87.4% (four stars)

The RtS rating of the pound is the result of the recent Brexit negotiations. In terms of RtS rating distribution, the following plots indicate how of the three fiat currencies the Yen has the highest most likely value of approximately 94% (four stars), while the Pound and Euro rating is around 89% and 87% (three star) respectively. The most likely RtS rating of the Bitcoin is 99% (five stars). The plots illustrating the distributions are shown below