- Bitcoin passed a major milestone yesterday when it crossed $50,000
- The mainstream media reported on Bitcoin’s dramatic move in their usual fashion
- Most put the move down to increased institutional interest but a few made sure to remind their readers of their negative bias
Bitcoin crossed $50,000 for the first time in its twelve-year history yesterday, an event that, as anticipated, captured the attention of the world’s media, with their usual biases and..interesting takes. Below is a summary of the opinions of some mainstream media outlets as they reported on the milestone moment.
The so-called cryptocurrency, which was created by an unknown inventor, has risen about 72% this year. Bitcoin and other cryptocurrencies are generated by computers. Part of its supposed value comes from the finite number that can be computed. But regulators have warned that they are risky, since their value can change fast, both downwards and upwards.
Bitcoin has crossed the $50,000 (£36,000) barrier for the first time on the back of surging demand for the so-called crypto king among mainstream investors. The cryptocurrency, which has endured wild swings in its value during a chequered 12-year history, struck a record high above $50,100 on Tuesday, according to the CEX.IO exchange.
The milestone was reached as traditional jitters over its legitimacy are cast aside through growing demand among corporate and institutional investors.
To be sure, recent developments don’t guarantee an uninterrupted climb higher for bitcoins and other cryptos. Back in late 2017, bitcoin’s price, nearing $20,000, staged an epic collapse, sliding to a nadir around $3,000 before rebounding years later.
Bullish investors also note that further gains for the asset may be contingent on help from regulators in establishing clear investor protections and rules for usage of cryptos, which are sometimes seen as a tool for swindlers rather than as a means of exchange and a store of value like gold
Bitcoin investors need to be prepared to “lose all their money,” Makhlouf said, repeating a warning from last month, though added he’s not advising people whether or not to invest in the digital currency.
Personally, I wouldn’t put my money into it, but clearly, some people think it’s a good bet,” Makhlouf, who is also governor of Ireland’s central bank, said on Tuesday at a webinar in Dublin. He said while some view Bitcoin an investment, “three hundred years ago, people put money into tulips because they thought it was an investment.
Last week, US treasury secretary Janet Yellen has called the “misuse” of cryptocurrencies such as bitcoin “a growing problem”, which was seen as a sign that policymakers are increasing their scrutiny of digital assets.
Yellen told a financial sector innovation policy roundtable:
I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism.
Unregulated by any central bank, bitcoin emerged as an attractive option for investors with an appetite for the exotic — although criminals have also picked up on its under-the-radar appeal.
Yet debate still rages over the status of the digital asset, as to whether it should be seen as a form of money, an asset or a commodity.
Bitcoin Slowly Changing Minds
While it’s interesting to note that the general narrative for Bitcoin’s stellar performance this year is down to an increase in institutional adoption, it’s clear that there are some outlets that are yet to be won over. However, if they haven’t been turned by now it’s unclear exactly what it would take for them to come around at this point.