What Really Causes FUD?

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There is nothing like a responsible journalist, no I mean it, where are they? Week after week we are bombarded by negative headlines that only turn out to be exaggerated or outright false. This journalistic cynicism isn't without cause, it gets clicks, it generates revenue... It's job security.

It doesn't matter how outrageous the claim is, it gets spread around and posted on boards. This does have an effect on the market, driving the price down and causing panicked selling, and even if it was just a regular correction and not a massive sell-off why not break out that 1 min chart and type up a piece showing everyone the absolute brutality all the bad news has caused. More clicks, shares, and a job well done.

Here We Go Again...

This week Bitcoin (BTC) saw it's fair share of bad news. The big headline, "OH MY GOD BITCOIN HAS CHILD PORN AND YOU"RE ALL UNDER ARREST!!!", turns out to be a classic. First rolled out in 2013 and making a return this year it's an especially scary headline, making you feel as though you're in league with dark-web perverts or maybe Leon from the professional. These articles give the impression that if you download blockchain protocol your computer is riddled with the illicit material. "Now That All Bitcoin Miners Are Child Pornographers, How Do You Protect Yourself?", reads a Forbes headline. They aren't the only big publication spreading this either.

Long Line of Lies

Do you need to be worried? No, not really, unless you feel the same way about every single other database you have ever utilized. I won't go into too much detail here because it's all pretty boring honestly, but to put it simply, the data in question is arbitrarily injected into the database,  just about every public database has similar information contained within them. Saying using Bitcoin (BTC) makes you a child pornographer is similar to saying if you are on the internet you are a terrorist because there are links to terrorist websites on the internet.

Some of these data packets are harmless material, random pictures or hidden messages about nothing. Some are links to dark web and what not. Anyway, the point is you don't have to burn your computer and move to the woods away from society, unless you sort through billions of lines of code to find a coded link, decode that link, and then knowing it is illegal material, visit said link. It's ridiculous and old news but that didn't stop it from being published relentlessly.

Later, news appeared that Binance (BNB) was issued a warning from Japan. Bloomberg ran an article stating "Japan's Financial Services Agency issued a warning to Binance (BNB) for operating cryptocurrency exchange services with Japanese residents through the internet without a license in the country, according to a statement on the agency's website. Bitcoin (BTC) fell as much as 4.5 percent after the Nikkei first reported the warning on Thursday, and was down 0.2 percent at 9:31 a.m. in Hong Kong on Friday."

Logically one would think that BNB coin would be what suffers from this news (it went down slightly then recovered) but BTC is the recognized name so throw it in there, why not. There isn't really any evidence that that terrifying 5% drop was directly linked to the news or not, but logic isn't really something we are dealing with here. Bitcoin (BTC) is driven by emotion and Bloomberg recognizes this.

Fueling the Frenzy

These reports are widespread and give the impression Binance (BNB) will be facing criminal charges for operating in Japan. Changpeng Zhao quickly responded via Twitter (NYSE:TWTR), "Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them." Another tweet states, "We received a simple letter from JFSA about an hour ago. Our lawyers called JFSA immediately and will find a solution. Protecting user interests is our top priority."

It isn't exactly clear what happened but it seems largely blown out of proportion. A run of the mill license acquisition can turn into negative rumors quickly and spark sell-offs, it happens in the stock market all the time. Whatever the truth may be CZ doesn't seem to be worried announcing they will be opening a Malta location and open crypto to fiat trading, a long-awaited trade option for Binance (BNB) users, especially those looking to break away from USD Tether.

Today the newest headline, "Warning: Blockchain Could Rot Your Brain", is already splashing across pages. We don't need to even analyze the absurdity of this one. It's the same argument that's been used for the internet, T.V., Video Games, calculators, newspapers and even the ancient philosopher Socrates when he criticized the written word. A scary new technology comes out and it's the end of humanity again.

Truth of the Matter

Douglas Adams sums this phenomenon up nicely: "I've come up with a set of rules that describe our reactions to technologies: 1. Anything that is in the world when you're born is normal and ordinary and is just a natural part of the way the world works. 2. Anything that's invented between when you're fifteen and thirty-five is new and exciting and revolutionary and you can probably get a career in it. 3. Anything invented after you're thirty-five is against the natural order of things."

So far, we're still here, and I don't think blockchain is going to destroy us either. This is sensationalism at its height, if anything is rotting your brain it's articles such as this (and mine). Bitcoin (BTC) investors have their share of legitimate worries. Who doesn't? The few examples here do not rank among them. In the end, true or false, they drive the market in a very real fashion, especially in such an emotionally traded instrument like BTC.

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Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content



Comments (8)

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FOMO and FUD are engaged in psychological and information warfare

   0   Reply (0)   Follow(437)  

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    • Scott
    • ,  Contributor
    • 22 May 2018, 03:05 pm

    And some are simply trolls indulging in schadenfreude

       0   Reply (0)   Follow(437)  

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      • DoubleD
      • ,  Contributor
      • 22 May 2018, 03:05 pm

      The FOMO-FUD cycle isn’t just something that happens entirely on its own.

         0   Reply (0)   Follow(437)  

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        • Jesse
        • ,  Contributor
        • 22 May 2018, 02:05 pm

        I love the fear-fueled pattern the “FOMO-FUD cycle.

           0   Reply (0)   Follow(437)  

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          • John R
          • ,  Contributor
          • 22 May 2018, 02:05 pm

          No FUD here only FOMO

             0   Reply (0)   Follow(437)  

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            • John R
            • ,  Contributor
            • 22 May 2018, 02:05 pm

            the cryptocurrency market is also booming, exploding like a supernova

               0   Reply (0)   Follow(437)  

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              Nice article. \n

                 0   Reply (0)   Follow(437)  

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                totally enjoyed it... spot on :)

                   0   Reply (0)   Follow(437)  

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