Bitcoin at $100K: How the media’s perception has shifted since 2009

As a seasoned investor with over three decades of experience in the financial markets, I have seen my fair share of bubbles and busts, fads and trends. But none has been as captivating, enigmatic, and polarizing as Bitcoin.

Bitcoin has surpassed a significant milestone of $100,000, approximately 16 years after its introduction in 2009. However, the journey hasn’t been smooth for early Bitcoin users, who have faced harsh criticisms from some of the most prominent figures in mainstream media.

The media’s interest in Bitcoin (BTC) began gradually increasing following the disappearance of its anonymous inventor, Satoshi Nakamoto, from online Bitcoin discussion forums in 2011.

Bitcoin (BTC) has garnered interest from notable outlets like Forbes, The New York Times, The Washington Post, Bloomberg, and CNN, predominantly publishing articles with a critical slant. This coverage undeniably played a substantial role in shaping the way society views Bitcoin today.

In the early 2020s, as Bitcoin reached unprecedented heights and grew more accepted by institutions, there was a noticeable increase in the proportion of optimistic stories about Bitcoin, based on data from Bitcoin Perception that we’ve been given firsthand by CryptoMoon.

Here are some of the harsh headlines and remarks about Bitcoin that critics have thrown at its supporters as they journeyed towards the $100,000 mark.

“So, that’s the end of Bitcoin then” — Forbes in 2011:

Back in June 2011, Forbes declared that the demise of Bitcoin had occurred, as its value plummeted from approximately $17 to nearly insignificant levels within mere minutes.

The sudden drop in Bitcoin’s price was caused when a single trader tried to sell an excessive amount of Bitcoin, which the cryptocurrency exchange Mt. Gox was unable to handle at that time.

Previously, financial commentator Tim Worstall from Forbes expressed an argument suggesting that Bitcoin was not sufficiently reliable or stable for use as a means of transaction or as a form of savings – an argument that, while somewhat debatable at the time, appears significantly less convincing in retrospect.

Bitcoin’s price then: $17

Satoshi Nakamoto’s anonymity a “huge red flag” — CNN in 2013

A significant number of experts found it hard to comprehend the notion that Bitcoin could be safe with a hidden, pseudonymous inventor, such as James J. Angel, a former CNN opinion writer, who firmly held the view that Bitcoin’s unidentified creator raised serious concerns and represented a major warning sign.

“I would certainly not trust my life savings to some mysterious computer algorithm created by shadowy anonymous characters in a system that attracts underworld types.”

In contrast to many others, Angel expressed disapproval towards the anonymity feature of Bitcoin transactions, arguing that it serves as a convenient means for tax evaders, drug traffickers, and terrorists. However, in 2024, this viewpoint is less prevalent given that Bitcoin transactions are traceable and can be scrutinized by blockchain forensics companies such as Chainalysis and TRM Labs, who collaborate extensively with law enforcement agencies to apprehend criminals.

Bitcoin’s price then: $17

Bitcoin may be “legitimate” after all — Bloomberg in 2013

Occasionally, even though it was not common, there were instances where Bitcoin was viewed favorably. During the year of 2013, when Bitcoin surged from $12 to approximately $900, more financial analysts on mainstream television began to express a clear and strong opinion: Bitcoin was considered “legitimate.

Among the specialists, there was Nick Colas, co-founder of DataTrek Research, who in a 2013 conversation with Bloomberg, advocated for Bitcoin’s security, consistent monetary supply, and its capacity to facilitate transactions across international boundaries.

In 2014, Marc Andreessen, co-founder of software-centric venture capital firm a16z, expressed optimism that Bitcoin would achieve the same level of impact as the internet by the year 2034. At that time, Bitcoin’s value was around $142.

Satoshi is like a “reckless” doctor overprescribing drugs — Financial Times in 2014

A former risk examiner at the United States Federal Reserve criticized Satoshi for building a poorly designed Bitcoin supply schedule that doesn’t account for the “ebbs and flow” of economic cycles.

It appears that Nakamoto’s works hint that one of the driving forces behind the creation was a desire for financial independence, which includes keeping the control of money supply away from interference by governmental regulatory bodies with a leaning towards libertarian ideals.

“But this is a mistake,” Mark Williams said.

“It ignores the ebbs and flow of economic cycles – a reckless approach that is the equivalent of a doctor giving penicillin to every patient without first checking whether they are suffering from infection, depression or mania.”

Williams admired Bitcoin as a groundbreaking technological development, yet he harbored concerns that it might challenge the authority of central banks since it demonstrated that money could exist beyond national boundaries.

According to Williams, central banks have the responsibility of managing the amount of money in circulation and setting interest rates while avoiding excessive inflation to stimulate economic development. However, Bitcoin aspires to replace these functions with a computer algorithm instead.

“The software behind Bitcoin is a remarkable technical achievement but those who tout such systems as a way of saving capitalism are profoundly wrong.”

Bitcoin’s price then: $672

Bitcoin is an “energy glutton” that could harm Earth’s climate — The Washington Post in 2018

Later on, MSM shifted their focus to critique Bitcoin due to its significant energy usage, as the hashrate soared above 50 exahashes per second (EH/s) in September 2018.

In October 2018, The Washington Post labeled Bitcoin as a “high energy consumer,” indicating something that uses an enormous or extravagant amount of energy, based on a report that pointed out data suggesting Bitcoin’s greenhouse gas emissions were similar to those produced by a medium-sized nation.

According to a study by The Washington Post, if it persists in its fast expansion, it might propel the planet towards alarmingly high temperatures of global warming.

As a researcher, I’ve noticed an impressive surge in Bitcoin’s hashrate, reaching almost 800 Exahash per second (EH/s). Remarkably, around 54.5% of this processing power comes from renewable energy sources.

Bitcoin’s price then: $6,332

Bitcoin is too cumbersome, slow, expensive to use — The New York Times in 2021

In 2020 and 2021, as the number of Bitcoin users and transactions significantly increased, mainstream media began attributing network congestion and high fees to this surge.

In a June 2021 article entitled “The Harsh Reality of Bitcoin,” Cornell University Professor Eswar Prasad expressed that Bitcoin has become overly complicated, sluggish, and costly to utilize.

“It is as though your $10 bill could buy you a beer on one day and a bottle of fine wine on another.”

“It has no intrinsic value and is not backed by anything,” Prasad added.

Prasad argued that instead of promoting financial democracy, Bitcoin could potentially widen the wealth gap since knowledgeable and affluent investors might gain advantages first, leaving the less informed and financially disadvantaged to bear risks they may not entirely understand.

Bitcoin’s price then: $40,218

Bitcoin ETFs approved, but think before jumping on the “bandwagon” — CNN in 2024

After the endorsement of Bitcoin ETFs in January, CNN advised potential investors to exercise caution when purchasing these ETFs, highlighting comments from financial advisors who recommended avoiding these products altogether or investing a maximum of 3% in them if they choose to do so.

According to CNN, individuals who are considering joining the trend should realize that they’re essentially buying into an asset with a fresh appearance, but it comes with similar risks such as potential market manipulation and unpredictable fluctuations.

Bitcoin’s price then: $46,368

Three weeks after The Economist made this claim, it was evident that the Bitcoin ETFs were not having a smooth debut as they had when Bitcoin dropped to $42,500, and redemptions from Grayscale’s Bitcoin Trust ETF (GBTC) were on an upward trend.

In my analysis, I observed a significant surge in investments towards BlackRock’s iShares Bitcoin Trust, which outperformed an astonishing 99.8% of all other Exchange-Traded Funds (ETFs) in the United States at that point in time. This inflow of funds far surpassed what industry experts had anticipated.

Approximately ten months later, investments into Bitcoin ETFs, except for GBTC, amounted to approximately $47 billion. This substantial influx played a significant role in Bitcoin’s dramatic price increase from around $46,200 to over $100,000.

“So Long As Bitcoin Is The Noisy Price Story, It Won’t Ever Be Money” — Forbes in 2024

According to John Tamny, a contributor at Forbes, if Bitcoin’s value continues to increase, it may become challenging for it to function as the broadly utilized currency that Satoshi Nakamoto originally intended.

A proponent of Bitcoin might employ Bitcoin as a means of transaction when they anticipate its value to increase, according to Tamny’s contemplation in a Nov. 17 Forbes article, because they view it as a medium that transfers value between parties, although they acknowledge it’s not universally trusted like traditional currency.

”If you agree with the present narrative that bitcoin’s surge is of the early days variety then you’re by definition accepting what’s similarly true, that bitcoin will never be money.”

At that time, the value of Bitcoin was approximately $89,895.

Analysts in the industry predict that Bitcoin will reach its next $100,000 much faster than it took to reach the first $100,000.

Will this potentially trigger a shift in the perspective of opinion writers in mainstream media? Historical data suggests it’s unlikely.

2024-12-05 16:48