Writers and readers who ‘get’ Bitcoin and cryptocurrencies generally have yet again been lamenting the coverage of the surge in prices over the last week. It appears that MSM journalists still don’t understand the technology and continue to peddle misinformation.
As Sebastian Sinclair at Coindesk writes: “But if one would have thought that recent milestones — bitcoin’s 10th anniversary, the arrival of crypto projects from the likes of JP Morgan and Facebook — would have encouraged the media to get smarter, this week’s news shows attitudes at major publishers haven’t changed much.”
The glaring lack of factual information became more obvious last week, and as Sinclair points out, if they had been paying attention, they would know that the prices rises were “foreshadowed by changes in market data and sentiment.” Volatility hit a multi-year low and there were technical indicators that a bottom had been reached, plus soon to happen ‘halvings’ flashed a signal that change in the market was on its way.
Instead, MSM didn’t look at any of these issues, and instead depended on speculation and theories rather than more concrete information.
Gizmodo published a headline claiming the price of Bitcoin had surged because “nobody learned their lesson after the last crash.” In the article there is a paragraph reading: “To be clear, bitcoin is absolutely worthless by any real measure. It’s fake money that’s about as practical to use in the real world as Monopoly bills. Bitcoin is backed by nothing and requires tremendous amounts of energy to mine using computers.” In no way is this helpful to the average retail investor who wants to understand the market better. It’s sloppy journalism borne out of a knee-jerk response. For example, the writer complains about the use of energy in mining Bitcoin, but forgets to point out, “ the cost of mining bitcoin’s physical competitor, gold, is perhaps even more guilty of harming the earth’s environment as its miners regularly tear apart massive landscapes and leave behind loads of toxic waste.”
One news service suggested it was a part of some April Fool joke and another that it was triggered by one large, mystery trade. It’s time the MSM got to grips with reporting crypto and journalists did their research.