2018 is still in its dawn and we have the most inaccurate and misinformed cryptocurrency opinion piece doing rounds in Canada. The country’s supposedly most trusted source of financial news, The Financial Post, published an article that looks like something straight from The Onion, and surprisingly, it is by the decorated editor Diane Francis.
The hilarity starts at the title which reads “Bitcoin and other cryptocurrencies are like the Bre-X stock — they will leave investor hopes in tatters.” Bre-X was a penny stock in Canada in the 90s which reached a high of $286 and plunged. “These are equity issues without rules and investors should avoid them like the plague,” the article’s subheading read. Diane Francis has the accolade of being the first woman editor of a national in Canada, however, with bitcoin, it seems, she has lost her touch.
Misguided and misinformed posts surrounding bitcoin have become a daily routine, but most of them don’t attract the readership like that of Diane Francis. This makes it a piece for even more critique. The piece is riddle with one-liners with inaccurate fact checks. It starts with “Anyone can create a cryptocurrency out of thin air,” which is true, but continues on to “Some create fake cryptocurrency exchange sites where bogus trading figures and prices are posted to entice money from the gullible,” which is a new one. And this are some of the more close-to-reality claims in the article.
Throughout the article, Francis, has this weird obsession with fake and bogus exchanges, and goes on to cite the embezzlements in Japan and South Korea as a result of “insecure or bogus exchanges.” However, the blow comes in the next paragraph, which requires full quote:
Cryptocurrencies are also hazardous. Take Bitcoin, which is at least self-regulated, the currency yo-yos in value without any underlying valuation or justification. There are no controls over how many Bitcoins are issued, and digital counterfeiting rings have been busy replicating the currency at “Bitcoin farms”, and a few have been apprehended.
And such uninformed conclusions keep coming. “Without control over supply and demand, currencies can flood a market that’s rising to take advantage of demand then disappear, leaving valuations in tatters. It’s easy.” The rest of the article then goes on to derail pointless cryptos like Etherium and Jesus Coin.
But at the same time, this misinformed piece sheds light on the issues and the misconceptions surrounding cryptocurrencies. Readers took to the comment section of the article to set things right.
It is common to get some things wrong for publications with no expertise in digital currencies. However, even a preliminary research would ensure that facts don’t go uncheck to such a large extent. The irony is that this comes from a publication specializing in the financial news!