Although the cryptocurrency market recovered when the news on the outbreak of the coronavirus in China worsened, it is absurd to say that it is good for Bitcoin. However, this is exactly what has been said in some “respected” mass media.
Since the last weekend of January, USD 20 billion have reached the cryptocurrency market. Bitcoin came to exceed USD 9,000, just as gold had done during the week.
In the mass media, there is a tendency to have clickbait (sensationalistic and direct) headlines with articles about news regarding Bitcoin and cryptocurrencies, with the sole objective of obtaining clicks. Traditional mass media have detected that there is an interest from readers in Bitcoin, which has led some media such as The Financial Times, which is generally recognized as being very rigorous, to publish an article with the headline “Coronavirus is good for Bitcoin.”
Open Attacks against Cryptocurrencies
The Financial Times began that article by cynically attacking Bitcoin: “Don’t let moral anguish over the deaths of potentially thousands of people get in the way of an opportunity to shill some crypto and pump up the price of Bitcoin.”
It should be noted that the article looks more like a personal vendetta against cryptocurrencies than an informative article. It uses several tweets from pro XRP users that try to blame “dirty fiat” bills as a reason for the spread of the coronavirus.
The truth is that Bitcoin could not benefit from such tragic news as the outbreak of such a serious virus. It should be remembered that Bitcoin is simply a decentralized and autonomous system that has no consciousness of its own and is not governed by a human mind.
Castle Island Ventures’ partner, Nic Carter, expressed his discomfort by saying that those “lunatics” had given Craig Wright an audience. The executive believes that their deep pathological hatred of the main cryptocurrency led them to praise “the worst scammers in the industry,” which he considers to be madness.
Crypto industry analyst @ Josh_Rager said that Bitcoin is doing the same as usual. In this regard, he noted that the coronavirus is almost becoming bait for creators of content on cryptocurrencies. He added that the short $BTC answer has not given rise to any abnormal changes in price during the recent waves of panic, although the stock in China has been significantly affected.
Correlation with Gold
Regarding the alleged correlation of Bitcoin with gold, it can be added that there have been only two incidents this year in which this correlation can be evidenced.
It was observed that geopolitical tensions in the Middle East caused both Bitcoin and gold to have a great bullish rally. During this crisis created by the coronavirus, it seems that both assets have also risen in price.
Of course, saying that Coronavirus is “good for Bitcoin” is absurd. The increase in the price of Bitcoin in the long term and the fact that it begins to look like digital gold or a refuge value only means that the asset has matured and cemented its quality to the public.
By Alexander Salazar