Financial Times’ Snarky ‘Apology’ to Bitcoin Supporters Draws Mixed Reactions

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As a seasoned crypto investor with a decade-long journey through the volatile world of digital assets, I’ve seen my fair share of ups and downs, hype cycles, and skepticism. I remember back in 2011 when Bitcoin was trading at $15.90, and FT Alphaville was already casting doubts on its potential. Fast forward to today, and here we are with Bitcoin hitting an all-time high of $100,000.

The tongue-in-cheek commentary, published by FT Alphaville, came as Bitcoin’s price hit an all-time high of $100,000 on December 5, marking a pivotal moment for the cryptocurrency.

Financial blog FT Alphaville, which is part of the Financial Times, has been vocal in its criticism of Bitcoin since it started covering the topic in June 2011 when Bitcoin was worth $15.90. Throughout the years, this blog has frequently discredited Bitcoin as a “zero-sum game” and criticized its practicality, labeling its price as an “unfounded measure of hype” that lacks connection to intrinsic value.

In his recent editorial piece, Alphaville’s city editor, Bryce Elder, playfully apologized to readers who may have missed out on Bitcoin’s incredible growth spurt due to the Financial Times’ critical reviews. “We regret if at any point over the past 14 years, you decided not to invest based on our coverage of an asset whose value has significantly increased,” Elder penned.

As a researcher, I must clarify that while this blog maintains its critical stance towards Bitcoin, it is essential to note that its criticism does not equate to an endorsement of traditional finance. Instead, the blog’s commentary remains focused on Bitcoin itself.

Crypto Community’s Response

The response within the cryptocurrency community was swift and divided, with some Bitcoin supporters quick to criticize the op-ed as insincere, branding it a “fake apology” or “cope-apology”. Others accused FT Alphaville of showing no humility, despite being shown wrong about Bitcoin’s path. One social media user commented sarcastically, “Imagine being so wrong and still lacking this level of humility.

Although Bitcoin recently surpassed $100,000, notable figures such as Warren Buffett, Jamie Dimon, and Peter Schiff have expressed doubts about its long-term sustainability. Their opinions align with FT Alphaville’s view that Bitcoin is still questionable as a reliable store of value and ineffective as a medium of exchange.

Although some view Bitcoin as a revolutionary digital currency, others argue that its worth is primarily driven by enthusiasm and speculation. The persistent criticisms from FT Alphaville reflect broader concerns about Bitcoin’s capacity to scale, energy consumption, and price instability.

In a significant criticism, a previous U.S. Federal Reserve risk assessor described Bitcoin’s fixed supply plan as an “irresponsible” approach to economic fluctuations, analogizing its inflexible structure to a physician administering penicillin to every patient without first evaluating their health condition.

Bitcoin’s Bullish Momentum Targets $110K Amid Institutional Support and ETF Inflows

Institutional adoption and rising Bitcoin ETF inflows have been the primary factors propelling Bitcoin beyond $100,000. At a technical level, Bitcoin has established robust support around $95,000, while facing resistance close to $105,000.

Bitcoin’s trajectory indicates an upward trend, consistently hovering above its 21-day, 50-day, and 200-day Simple Moving Averages (SMA). Moreover, the Relative Strength Index is close to the overbought region, which may trigger a slight pullback. However, robust buying interest is driving the price up. With such optimism persisting, analysts anticipate that Bitcoin could potentially reach $110,000 as its next goal.

The Bottom Line

FT Alphaville’s ironic “apology” underscores the persistent schism between proponents of cryptocurrency and those who are skeptical. As Bitcoin advocates revel in its landmark price milestone, detractors continue to express doubts regarding its long-term viability. This opinion piece acts as a reminder of the heated debates related to Bitcoin’s position within the global financial framework.

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2024-12-06 16:26