Media Coverage of Bitcoin Is Still a Total Disaster

A recent Washington Post article shows how journalists get cryptocurrency wrong

Photo: Alexander Baumann/EyeEm/Getty Images

Claim: Currencies are meant to be stable

Claim: Bitcoin was designed with volatility in mind

Claim: Validating transactions is the source of its computational overhead

Claim: Bitcoin’s volatility is unnatural

Does the Post have any proof that markets are not long-term efficient? If so, they have a Nobel prize in economics to collect.

Claim: Bitcoin is only used as a currency due to the wealth effect

Price (solid red line) and transaction count (shaded red area) during the 2014–16 bear market. Image: Coin Metrics

Claim: Bitcoin’s deflationary characteristics mean that no one uses it

Image: Coin Metrics
Image: Bletchley Indexes

Claim: Bitcoin is illiquid and hence manipulated

Much illiquid. Very manipulation. Image: Coin Metrics
Image: Nomics
CME daily volumes (contracts are for 5 BTC). Image: CME Group

Claim: Bearer assets are dangerous and illegal

Claim: Bitcoin still relies on a trusted set of intermediaries

Nothing backs bitcoin or pegs it to a basket of assets. That’s the point. Bitcoin was designed specifically to avoid the influence of a single authority.

To sum up

Building a fundamental piece of technology that will bring public blockchains to the next billion users? Reach out:

Partner, Castle Island Ventures. Cofounder,

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