As usual, the mainstream media is spreading FUD about bitcoin, writes Kiril Nikolaev at CCN. He argues that they simply don’t understand that bitcoin is heading in the right direction.
The mainstream media loves it when bitcoin takes a tumble, and that is an opportunity to print lots of articles blasting cryptocurrency generally and bitcoin in particular.
Forbes was one of the most vocal, and it managed to get 200,000 views for an article with a headline proclaiming that the cryptocurrency is down because “You Don’t Need It.” Nikolaev says , “the writer argued that for bitcoin to succeed, central banks, equity markets, and gold must fail. This shows the writer’s total lack of understanding of how the cryptocurrency works.
Nikolaev is so disgusted by the mainstream media’s approach that he has come up with 3 things that it needs to know about bitcoin, but always ignores.
1. bitcoin is not a correlated asset
For a start it isn’t correlated to the S&P 500, or any other stocks such as gold. “Over a five-year period, there were stretches when the two asset classes seemed correlated but not enough to suggest meaningful correlation.” That means if the stock market crashes or if gold suddenly dropped, bitcoin’s price would be largely unaffected. The same would apply if those stocks or gold shot up — bitcoin would not be affected.
2. bitcoin and central banks
The financial mainstream media also believe that the decisions made by the Federal Reserve have an impact on the top cryptocurrency. This is simply not true. Central banks have no impact on bitcoin.
3. bitcoin is ahead of traditional payment methods
When the mainstream media covers bitcoin, it is mostly about the cryptocurrency’s price and volatility, but it never talks about its use cases. Nikolaev says, “For instance, on Monday, a whale transferred about 44,000 BTC worth $310 million to another wallet. The transaction fee was an astounding $0.32.” As he says, if you made that transfer with Western Union, it would have cost $6 million.
So, next time you read something negative about bitcoin in the mainstream media, remember all the positives.