Why doesn’t mainstream media understand cryptocurrency?
There’s no doubt that cryptocurrency has progressively become the focus of media interest, particularly after 2016. Despite initial negative coverage of cryptocurrencies, the modern media is gradually becoming more convinced of the concept of crypto, but they remain cautious of this asset class.
Questionable media coverage
The coverage of cryptocurrency by the majority of media has been quite questionable so far, as it is not always objective. It is natural to have reservations about something that is not under the authority of any entity, even the government. However, it must be acknowledged that understanding cryptocurrencies necessitates a particular level of education or skill. Bitcoin is not the same as Ethereum, and Ethereum is not the same as Dogecoin, for example. To offer an objective picture of the area, journalists covering the topic must first comprehend blockchain technology, the notion of decentralized finance, and have in-depth knowledge of each coin. Many people choose to promote cryptocurrency in one aspect exclusively prior to 2016 and continue to do so today: money laundering.
It is impossible to cover the full crypto topic in one single article, as the majority of people now realize. While only 14% of European people believe they are ready to buy bitcoin in 2022, it is clear that the cryptocurrency has gained in popularity and is expected to be adopted by the masses in the near future. On the other side, one could infer that Europe has lagged behind its neighbors in terms of bitcoin adoption and still lacks objective traction. However, we can consider the 14% of people who are willing to acquire Bitcoin to be an optimistic figure, people must first gain a thorough understanding of the asset class before investing in it. It is impossible to blame people for not adopting this asset class early, because the public must first be educated and let them decide on the basis of factual evidence, what they will think of the asset.
Cryptocurrencies like Bitcoin and Ethereum are revolutionary, as seen by their explosive growth since 2010. Because the technology is just unique, this explains the increased media interest in recent years. On the other hand, anything revolutionary will elicit a lot of criticism since it will require people to adjust to it over time. After all, in its early years, the Internet was subjected to a barrage of criticism. The Internet is still condemned for a variety of reasons. Also, the “average” media organization is not tech-savvy and may not completely comprehend crypto operates.
Blockchain is a new type of technology.
The blockchain technology that underpins cryptocurrencies is rarely discussed in the mainstream media. The majority of people are still unaware of what this technology is, yet crypto fans often assume them to know how bitcoin, NFT, and Ethereum are operated. Ordinary people, according to some specialists in the field of blockchain technology and cryptocurrency, should be able to understand the concept of a smart contract.
Normally before even thinking of introducing the Bitcoin in your portfolio, you should be able to understand what the blockchain is, because you must first comprehend the technology underlying this virtual money. However, the exact opposite has occurred. People have been taught about Bitcoin, its procedures, and its risks since 2010, but they have not been taught about blockchain technology. Yet it was exactly at this level that we could assess that the asset was revolutionary, in the sense that it allowed people to record transactions in a decentralized framework.
A basic definition of blockchain technology would be that it is a simple method to record transactions made by individuals. If an individual plans to go out and shop, they will most likely use their credit card, where the amount of the purchase will be communicated to their bank, and will then be deducted from their bank account. This modern and revolutionary method allows something that would not have been possible a few years ago.
Individuals would be able to register the contract on the blockchain as a single transaction, making it a transaction for all stakeholders. People can understand the blockchain rather easily, which helps to explain why Bitcoin is such a valuable and unique asset. Nonetheless, the majority of the mainstream media has chosen to discuss Bitcoin, portraying it as a decentralized currency without adequately explaining the technology behind it, or even how it operates in a practical and straightforward manner. Another area for development will undoubtedly be assisting people in comprehending blockchain technology, and this gap may explain why mainstream media lacks a thorough understanding of bitcoin.
DeFi is a genre of science fiction (decentralized finance)
Decentralized finance (DeFi) is very different from traditional finance. Because the business operates without government supervision, power is concentrated in the hands of the people rather than giving governments the authority to dominate markets or a specific currency. The European Central Bank and the Federal Reserve of the United States, for example, are both capable of printing more money at any time or managing interest rates, making assets inflation-sensitive and potentially devaluing the currency in issue. Bitcoin cannot be released in bigger quantities than traditional currencies such as the US dollar, euro, or Chinese yuan since the supply is limited and the blockchain protocol forbids it.
This, in effect, creates a scarcity situation for the item and sets the asset’s value based on current market demand. Despite increased demand for the US dollar, people are realizing that money isn’t worth as much as it used to be, thanks to low interest rates, which allow everyone to borrow cheap money, supporting asset prices (listed stocks, real estate, precious metals, etc.). In France, decentralized finance is not yet widely covered, which may explain why mainstream media lacks a thorough understanding of cryptocurrencies. Much of the asset’s strength comes from its ability to be safeguarded against government tampering, and this is where the majority of the technology’s worth is found.
On the other hand, it is quite understandable that people can be skeptical of unregulated markets, especially since the latter can be quite volatile, and do not always offer the security provided by certain traditional markets. Giving the topic additional depth and perspective, as well as defining what decentralized finance implies in simple terms, will benefit individuals in the long run. When talking about DeFi, it is still important to first explain the therm to regular people. We all remember the initial coin offering (ICO) explosion at the end of 2016, which did not go well. There is clearly a case to be made for the perils of unregulated markets, and those who desire to minimize risk should thoroughly study all pros and cons of a potential investment and ensure that the digital asset has demonstrated its ability to last on the market.
To completely comprehend the notion of cryptocurrencies, more coverage of blockchain, DeFi, and special attention to assets by an expert in the subject is required. Because it is attention-getting, modern media focuses on clickbait techniques and receives the majority of its money from them. As a result, media corporations are enticed to publish material that creates the most clicks, without considering the full consequences or the lack of education that the coverage of this subject may generate. They aren’t to blame because this is how they earn their living, but it does explain why the mainstream media doesn’t really understand and support cryptocurrency.
While keeping up with the newest cryptocurrency news is important, educating the public about this new asset class is a much better strategy in the long run. Furthermore, bad coverage always attracts more attention than truthful, neutral, and objective coverage, which is why modern media has failed to explain the notion of cryptocurrencies to a wider audience. Because experts do not need to be schooled on the subject, it was evident that the themes that would receive the greatest attention, regardless of the scenario, would be covered. Given the prominence of a new asset class like NFTs, it will be even more critical to guarantee that coverage of all cryptocurrency-related topics stays neutral and balanced.