As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the ebb and flow of various investment trends, from the dot-com bubble to the housing market crash. In this context, I find the Washington Post’s recent opinion piece on cryptocurrencies to be not only misguided but also a reflection of their lack of understanding about the transformative potential of blockchain technology.
On Thursdays, a perspective piece by The Washington Post labeled cryptocurrencies as valueless, based on their decline during the recent worldwide market crash known as “Black Monday,” which significantly impacted major digital currencies.
As a researcher delving into the realm of cryptocurrency, I noticed an opinion piece published in a renowned newspaper that sparked controversy among crypto enthusiasts. Critics swiftly labeled it as “clickbait,” asserting its intention was to provoke the larger crypto community. Furthermore, they highlighted various flaws within the article, suggesting that the Washington Post had unfairly blamed cryptocurrencies for their inability to withstand the global market downturn.
What is the Washington Post article on crypto all about?
On Thursday, an opinion piece penned by Megan McArdle was published in The Washington Post, entitled “Crypto’s Value Shines Brightest During Market Fear.“
According to an author in the Washington Post, cryptocurrencies initially emerged in 2009 as a means of escaping government control and serving as an alternative to traditional finance systems riddled with corruption, instability, and self-dealing. However, these claims have not proven true over time, particularly during the global financial crisis known as “Black Monday.”
The article continues by proposing an opinion that digital currencies such as Bitcoin may be ideal for nations experiencing poor monetary policies, like Venezuela. Moreover, it’s pointed out that crypto transactions can be quite complex and time-consuming, sometimes lasting for hours. To streamline these operations, the writer suggests utilizing cryptocurrency exchanges as an efficient solution.
In wrapping up, the author suggests that using Bitcoins and similar digital currencies is primarily attractive to individuals seeking to transfer their assets abroad while avoiding local tax regulations.
What Happened on Black Monday?
As a seasoned investor with over two decades of experience, I have witnessed my fair share of market volatility and downturns. Monday’s global sell-off was particularly striking because it reminded me of the crash in 2008, when fear and uncertainty gripped the financial world. The steep fall in Japan’s Nikkei index, which I remember vividly from my early days as a trader, sent shockwaves through the markets.
However, Bitcoin soon rose through the week and currently is trading around $61,031.
How Crypto lovers responded to the WaPo article?
Cryptocurrency enthusiasts expressed strong disapproval towards a Washington Post article, labeling it as an unfair attack on the cryptocurrency sector. They asserted that the author lacked understanding of real-world situations and drew inappropriate analogies.
In my role as a researcher, I’d like to offer a rephrased perspective on a recent opinion piece published in The Washington Post. Essentially, the article presents Bitcoin and cryptocurrencies as valueless, seemingly interchangeable, and detached from reality.
— Highroller.btc (Cryptofronts) 🧙🏽♂️ (@cryptofronts) August 8, 2024
Some users also objected to another article by the Washington Post calling Bitcoin “stupid”.
Fact | Washington Post proves how stupid it is.
— Walker⚡️ (@WalkerAmerica) August 9, 2024
Why does the Washington Post article have logical fallacies?
Argument 1
In the opinion piece at hand, the author suggests that Bitcoin’s decrease in value during a market collapse contradicts its initial intention as a counterpoint to conventional financial systems and markets, implying that it did not meet its intended purpose.
The author neglected to note that Bitcoin’s value has skyrocketed from virtually nothing to a staggering $72,000 USD. In other words, BTC has gained widespread acceptance, and it’s no surprise that significant global events will likely impact it as well.
As a long-time observer of the cryptocurrency market, I have come to understand that significant events can have a profound impact on Bitcoin’s (BTC) price fluctuations. Having witnessed the surge in BTC’s value following the failed assassination attempt on former President Donald Trump, I am not surprised to see the recent rapid increase in its price after Black Monday. In fact, it seems as though BTC responds strongly to major events that capture global attention. This time around, BTC has surged to $61,000 within just two days, demonstrating a swift recovery from any losses it may have experienced. It’s fascinating to see how this digital currency continues to evolve and adapt in response to the ever-changing world events.
In contrast to traditional fiat currencies, which can be printed or created without limit, Bitcoin has a fixed supply of 21 million coins. Additionally, every four years, there’s an event called Halving that reduces the rewards for mining new Bitcoins. As a result, it is expected that the value of Bitcoin will increase over time due to its limited supply.
According to an article in Forbes, it’s highlighted that the inflation rate for Bitcoin is approximately 75% lower compared to the United States.
Argument 2
Additionally, it’s important to note that cryptocurrencies such as BTC and other decentralized financial systems have been criticized for not providing a definitive solution to the corruption and underlying issues in traditional banking. However, it’s essential to understand that just like the internet, these systems cannot entirely prevent human greed or misuse. They may offer new possibilities, but they do not eliminate the potential for individuals to exploit them for illicit activities.
In a blockchain, its decentralized structure ensures unmatched transparency, allowing every user to verify the system’s current state. Essentially, this implies that whether you’re a government official, a corporation executive, or just your neighbor who dabbles in cryptocurrency, everyone possesses similar capabilities for checking the status.
Argument 3
To add, the idea that cryptocurrencies serve solely as a means for the affluent to move their funds beyond local legal systems is overly simplistic. In fact, Bitcoin has advanced significantly to the point where former U.S. President Donald Trump has announced plans to establish a strategic Bitcoin reserve, and Russian President Vladimir Putin has expressed support for legalizing crypto mining. Notably, both the United States and Russia do not have as poor a monetary policy as Venezuela, yet they recognize the potential of cryptocurrencies and are actively pursuing them.
Conclusion
In my perspective, an analysis by The Washington Post appears to be narrow-minded and intentionally provocative towards the rapidly growing crypto community that aspires for a more significant role in U.S. politics. As time progresses, Bitcoin (BTC) and other digital currencies are poised to build a stronger reputation; however, I must admit that legacy media’s standing may not share the same trajectory of growth.
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2024-08-09 13:41