Mainstream media outlets are finally reporting on the recent rally that saw Bitcoin creep close to its all-time high — but some commentators appear to be determined to spread FUD.
Two articles released within hours of each other earlier today — a Financial Times editorial titled “The elusive promise of Bitcoin,” and a Fox Business piece called “Bitcoin no match for gold in coronavirus world” — state that Bitcoin does not live up to its promise as a store of value.
The Financial Times focused on Bitcoin’s volatility, stating that its “status as a safe haven is more theoretical than anything else.” The editorial claims “there are no fundamentals on which to base a judgment of Bitcoin’s value. Its current price just reflects what people are willing to spend on it.”
The piece wasn’t all bad, pointing out that a major factor in Bitcoin’s recent rise was mainstream adoption, noting options on Chicago Mercantile Exchange and PayPal offering crypto sales to all U.S. residents. It goes on to say that Bitcoin’s price may continue to rise due to “the weakening of the dollar” and suggests that it is “because the Federal Reserve has done such a good job meeting the world’s need for dollars that investors feel comfortable taking a punt on Bitcoin,” concluding that:
“If so, cryptocurrency advocates have the central bank to thank for their recent successes.”
Fox Business also noted Bitcoin’s price rise with apparent alarm, and set about warning its readers away from investing in the cryptocurrency by rounding up Bitcoin haters including gold bug Peter Schiff, Roubini Macro Associates CEO Nouriel Roubini, and Bridgewater Associates founder Ray Dalio. The piece quotes Schiff saying it’s “nonsense” to think Bitcoin is better than gold:
“There’s no real use for Bitcoin. All you can do with Bitcoin once you buy it is sell it, but you need somebody else to buy it from you. It’s a massive pump-and-dump.”
Fox quoted Roubini as stating that “crypto is the mother or father of all scams and bubbles,” while Dalio’s past criticisms of volatility and lack of buyer protections were also cited.
The article did not mention that both Roubini and Dalio have recently softened their views towards Bitcoin. Last week, Roubini said the cryptocurrency might be a “partial store of value” because of its limited supply. Earlier this week, Dalio admitted he “might be missing something” about Bitcoin and “would love to be corrected.”
However, there was some support for Bitcoin in the media from an unexpected party — China, a country well-known for its tight stance restricting the digital asset. Chinese state media channel CCTV covered the recent price rally on national TV this week, saying that Bitcoin’s network, development and investment ecosystem are more advanced compared to the 2017 bull market.