The topic of cryptocurrency has been getting an unprecedentedly-large amount of media attention in recent months. As the general public continues to become increasingly aware of cryptocurrencies and blockchain technology, the media finds itself reporting on various cryptocurrencies much more often than in previous years.
As a result, the question that we’re left to consider is if the recent spike in media attention will have a positive or negative impact on the crypto-economy.
The issue in considering this topic is that we essentially have to deconstruct the type of attention that cryptocurrency is receiving in the recent news cycle.
A lot of the news that broke this month about cryptocurrency was inherently negative. Take for example, the public attention received by China’s stance against ICO’s, and various negative statements about cryptocurrency from media figures such as CEO of JPMorgan, Jamie Dimon, calling Bitcoin a “fraud,” and saying that if any of his traders traded Bitcoin he would “fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous.”
So while it’s true that cryptocurrency is making headlines more than ever before, a lot of these headlines are negative. In theory, this should have negative effect on the value of cryptocurrencies.
However, this may not be the case as it seems to be very possible that the old adage: ‘There is no such thing as bad publicity,’ might be in play here.
Take, for example, the JPMorgan story. When Reuters reported Dimon’s statements about Bitcoin being a ‘fraud’–they did so in the company of context that included the fact that:
“Dimon’s comments come as the bitcoin, a virtual currency not backed by any government, has more than quadrupled in value since December to more than $4,100.” (Reuters)
So for members of the public that consumed this article, it’s true that they were informed of a negative statement about Bitcoin, but it’s equally true that they ended up learning information that actually serves to create further hype for the currency, since the article makes explicit mention of the fact that the currency has quadrupled in value in an impressively short amount of time.
When Ethereum and–more recently–Basic Attention Token launched the media attention these currencies received was remarkable. The media attention received by both currencies contributed to the high market value that both currencies currently hold.
In fact, when Basic Attention Token launched, the amount of media press it received created so much hype surrounding the currency that its Initial Coin Offering (ICO) sold out $36 million dollars worth of coin in under 30 seconds.
It would seem that news is only bad news for currencies when it creates panic. When the news gets bad enough to cause doubt in the currency itself, people start to sell the coin they hold, crashing the currency’s value.
However, this loss can often be offset by the public learning about the investment value of various currencies and deciding to buy-in.
That’s without even mentioning how much of this recent press attention has been positive. Tech websites were quick to report attempts of atomic swap, a system which would allow users to trade between two different cryptocurrencies without any central middleman. Undoubtedly, if atomic swaps become possible with all of the major currencies, it will remove some of the pressure that new investors might feel when first buying cryptocurrency, as the barriers to exit will be lessened by the fact that they can trade their cryptocurrency for another, without loss, if they feel they haven’t made the right investment.
Similarly, the news of both Estonia and India’s desire to create the world’s first country-backed cryptocurrency adds a lot of legitimacy to the economy in the minds of average consumers. Taking the stigma away from cryptocurrencies will eliminate the barrier for entry as well, since cryptocurrency is becoming an increasing part of everyday life.
As cryptocurrency becomes easier to purchase, and the public becomes increasingly aware of how it works and what it actually is, more members of the public will look to buy-in and the economy will rise as a result. As long as the negative press doesn’t become overwhelming or cause panic, the media paying increasing attention to cryptocurrencies should actually increase their value in the long run.
This article was written by one of our guest writers
Author: Jack Filiba - Read more from Jack here
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