Cryptocurrency Community Fires Back Against Misleading Reports of Banks Banning Bitcoin
FUD OFF! — A rational conversation about the latest news, without the unnecessary fear, uncertainty and doubt.
In latest news, a select few lending institutions have blocked the purchase of cryptocurrencies through their platforms.
Needless to say, the media goes wild.
Express.co.uk — “Bitcoin crackdown: Cryptocurrencies hit as major banks ban customers from investing”
Bloomberg.com — “Bitcoin Ban Expands Across Credit Cards as Big U.S. Banks Recoil”
Accurate depiction of event — “Some lending institutions disallow purchases of cryptocurrencies using borrowed money”
The Battle For The Financial Sector
Most of us see this situation as financial institutions trying to protect their business model by stopping customers from using disruptive technologies.
Others see it as lending institutions trying to protect their customers from using borrowed money to invest in volatile markets.
However, If lending agents really wanted to protect their customers from losing money, they would block customers from using credit cards to pay for slot machines, online gambling sites and the lotto.
Instead of blocking them from what many see as the only accessible investment vehicle society has ever given them.
Media Manipulation
Mainstream media want us to believe the world is against cryptocurrencies because “it’s a dangerous money laundering tool that has no intrinsic value.”
They want us to believe “the tide is turning against bitcoin and other cryptocurrrencies.”
While researchers who study the field say it’s as one of the world’s break-through technological revolutions, with projects set to transform the gaming, health, manufacturing and payment sectors over the coming years.
In fact, governments around the world are regulating it into existence, by enacting policies that encourage sustainable taxation and financial accountability.
Many mainstream media articles display cloak and dagger tactics, simultaneously attacking cryptocurrencies while hiding the fact that financial institutions are desperately trying to fight the future.
Such journalistic sensationalism gains them more reads, more shares, and the power to taint minds.
Investor and day trader Ben McKay believes the key to fighting FUD is education.
“Most of these articles that come out are just parrotted versions of eachother. If you really take a good hard look at them you can see that they’re full of opinions and speculations but very few actual facts. The facts that are included are grossly exadgerated to create false impressions.” He said.
“If do your own research, and you’re sure about the reality of the situation, this form of media should have very little impact on your long term trading view. Unfortunately many people in the crypto community don’t fully understand what their investing in so they panic and sell at the first sign of bad news.”
The Reality of the Situation
It should be no surprise that companies are refusing to lend customers money to invest in their most formidable competition — borrowed money should never be used to buy cryptocurrencies anyway.
In fact, we should assume that all lending institutions will block the purchase of cryptocurrencies and acknowledge that it’s a good thing.
They’re doing the cryptocurrency community a favor.
How many times have you heard the expression, “only invest what you can afford to lose”.
Well, if we’re investing with borrowed money, we can hardly afford to lose it.
There may however be those that use credit cards to buy cryptocurrencies to rack up rewards points with the intention of paying the debt off immediately.
So in reality, this situation may be of minor inconvenience to some, but not many.
Get The FUD Outta Here!
As with all FUD, the actual event will have no meaningful effect on the cryptocurrency sector.
The exchanges will keep running, miners will keep digging and developers will keep innovating.
The situation may inconvenience a few investors looking to take advantage of credit card rewards points — but the biggest effect will be a fall in the face value of cryptocurrencies due to the fear, uncertainty and doubt the accompanying journalism is designed to inspire.
How To FUD Proof Your Portfolio
The truth is, there are coins out there that will achieve mainstream adoption within the next months. Real users, paying real money for solutions that provide real value.
Even if every cryptocurrency investor in the world took their money out of the market (which we won’t). The value of these coins would rise again without the help of investment markets.
Maxim Blagov, CEO of Enjin Coin provides advice on how to avoid the emotional rollercoaster caused by such turbulent volatility.
“The best way to protect yourself from fear and uncertainty in the cryptocurrency market is to invest in coins that have real world value.” Blagov said. “There are Coins that are scheduled to achieve adoption in the near future, and will therefore have users buying the currency for it’s intended purpose. This is what will allow investors to avoid the volatility of investing in speculative bubbles”
This is a great opportunity to take stock of your inventory and figure out if your portfolio is as bulletproof as you think.
If you feel you may have cryptocurrency related knowledge gaps, please read the following articles and strengthen your position.
