What is Crypto FUD?

What is Crypto FUD: Why Investors in Cryptocurrencies are Affected by FUD

FUD is an acronym for Fear Uncertainty and Doubt. It is a psychological manipulation tactic used in marketing, politics, radio, TV, religion and advertising.

The impact of FUD on the cryptocurrency market can be very large, especially when compared to other traditional markets.

In this article, we'll take a closer look at the FUD and all the ways it affects cryptocurrency prices. What is crypto FUD? Let's try to find out!

What is FUD at Crypto: Basic Things to Know

So what is FUD in crypto? As mentioned before, FUD is an acronym for Fear Uncertainty and Doubt.

It is a market manipulation tactic that uses misinformation to generate negative emotions about a product, usually an asset or technology.

FUD is generally implemented through the publication of negative and false news.

For example, Microsoft has used this tactic against the Linux operating system since the 1990s.

As a result, Microsoft's competitors were considered untrustworthy and unsafe patent infringers.

FUD can be split into something natural and created artificially. Natural reasons for FUD in the cryptocurrency market could be negative news about a country that is putting stricter rules.

For example, tightening US cryptocurrency regulations could shake the entire market, causing panic and doubt that cryptocurrencies still exist.

What is crypto FUD of the second type? Well, artificially created FUD is usually negative material published by the press, citing unnamed suspicious sources or Elon Musk's eccentric antics on his Twitter.

The CEO of the largest cryptocurrency exchange Binance Changpeng Zhao, drawing on his own rich experience, argues that no bull market is complete without FUD.

So if you read the suspicious negative news that causes fear around cryptocurrencies, ignore the FUD, don't sell any assets and stay calm.

What is Crypto FUD: Why are Cryptocurrency Investors Affected by FUD?

What is Crypto FUD: Why Investors in Cryptocurrencies are Affected by FUD

What is FUD cryptocurrency panic? FUD manifests itself strongly in the cryptocurrency sector due to one characteristic of cryptocurrencies — the lack of security. No one knows the true identity of BTC creator Satoshi Nakamoto.

And neither he himself, nor any government, company or organization guarantee that the Bitcoin it will not fall below $5.000, $1.000 or $100. And even though it costs $61.000 in exchanges, no store or bank is required to accept bitcoins.

This fact gave rise to the very popular concept of Bitcoin as a bubble and a financial pyramid that will soon break.

Among its supporters are well-known personalities — company directors, bankers, economists or large investors.

Famous People Who Don't Trust Cryptocurrencies

What is the main reason for FUD encryption? When famous or influential people speak out against cryptocurrencies, it can also cause FUD.

Here is a list of some famous people who spoke out against Bitcoin or other cryptocurrencies:

  • Warren Buffett, CEO of Berkshire Hathaway Inc.
  • Brian Moynihan, CEO of Bank of America,
  • Ben Bernanke, former chairman of the US Federal Reserve.

One person was also particularly critical of cryptocurrencies, and his comments caused an extremely high level of FUD. This man is Jamie Dimon, CEO of JP Morgan Chase. Thus, Jamie Dimon declared:

Bitcoin is a fraud that will explode. It's not a real thing, it will eventually close. It's worse than tulip bulbs. It won't end well. Someone will be killed.

After Jamie Dimon made these statements to the press, the price of Bitcoin dropped by 6%.

Jamie Dimon has since changed his stance on Bitcoin and stated he regrets calling the fraud bitcoin:

Blockchain is a real technology. You can have yen cryptodollars and stuff like that.

Although he has changed his stance on the BTC, that still hasn't stopped him from causing a lot of FUD around cryptocurrencies and lowering their price.

What is Crypto FUD: How to Avoid FUD?

After figuring out 'What is FUD in cryptocurrency?', let's consider all the ways to avoid FUD. Well, the key is to learn to think, analyze and read between the lines.

After all, there will be more and more FUD attacks on the market. New projects are launched and new cryptocurrencies appear every day. That's why you should:

  • Always be suspicious of what and where you read and analyze all information;
  • Use official sources first;
  • Never jump to conclusions—use your brain and logic;
  • Learn constantly.

Conclusion

What is the FUD cryptocurrency panic? Does this really make sense? Well, just remember that Bitcoin has been buried over 300 times. In particular, Nouriel Roubini, winner of the Nobel Prize in Economics, announced the fall of Bitcoin in 2013.

After that, Bitcoin saw many ups and downs, but the price of BTC was always at least several thousand dollars, no matter how much it dropped.

But after every Bitcoin burial, thousands of investors sold their digital assets and lost money due to the FUD.

So if you want to make money from digital assets, negotiates like a pro. Think of lows not as a sign of a break, but as an opportunity to buy more bitcoins at a lower price.

Remember that cryptocurrencies are not dollars and euros, which can be printed in arbitrary amounts — the number of bitcoins is strictly limited.

And those who enter the cryptocurrency market later will be forced to buy bitcoins at a higher price. That's why the rate will only grow in the long run.

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