Will the FUD strategy destroy Bitcoin and blockchain?

FUD stands for "Fear, Uncertainty and Doubt", a marketing strategy used to prevent competitor products from becoming popular among consumers. FUD strategies tend to convince consumers that the product is safe, trustworthy, and has a reputable history. FUD practitioners achieve this goal by instilling fear, uncertainty, and doubt in consumers about the competitor's products. Since Bitcoin was launched in 2009, it has become a "thorn in the side of 'competitors'". Cryptocurrencies offer a solution to the inefficient working methods currently used in the traditional banking and financial system, which makes those who profit from these traditional solutions feel threatened.

fear

Competitors are trying to instill fear in consumers by making negative statements about Bitcoin. Attempts to use news of regulation and taxation to scare consumers away from Bitcoin. When CoinIdol.com asked David Duchene, lead developer of GiveCoin 2.0 and founder of Strength in Numbers Foundation , how he sees FUD strategies applied to Bitcoin, he said, “Most of the time it’s about you being taxed… or ‘legality is not established’ or some other type of thing.” You’ll often see articles questioning the legitimacy and legality of Bitcoin and articles highlighting its use by criminals and its involvement with the dark web, etc.

Uncertainty

Information asymmetry makes it easy for competitors to use FUD tactics. It is very easy for competitors to attack its uncertainty because Bitcoin is a relatively new thing and the general public does not know much about the principles and methods of using Bitcoin. This makes it easy for the media to confuse consumers who are interested in Bitcoin. But UTXO founder Rob Gonzalez said that FUD activities are far more simple than dissuading citizens from buying and using Bitcoin. Gonzalez said: "FUD or fear, uncertainty and doubt have all affected the price of Bitcoin."

Mt.gox collapse incident

Gonzalez pointed to the Mt. Gox hack as a classic example of FUD campaigns often cited about cryptocurrencies. On February 24, 2014, Mt. Gox announced that it had lost 744,400 BTC and stopped withdrawals from its platform. In the following days, the price of Bitcoin dropped from $623.9 to $480.66.

Suspect

Cases like Mt. Gox make existing and potential consumers of Bitcoin doubt about its capabilities and reliability. Why would a reasonable person disappear after investing $350,000,000 in Bitcoin? As long as the centralized banking systems can get a chance to spread FUD against their competitors, they will do so. The banking and financial industry is threatened by the blockchain technology behind Bitcoin. Bitcoin facilitates decentralized transactions and gives you 100% control over your money. This threatens the centralized institutions, so they use the media to implement FUD strategies to prevent Bitcoin adoption. But this should change soon, because banks have shown a strong interest in blockchain technology. For these centralized institutions, it is only a matter of time before they adopt systems like Bitcoin and blockchain. Note that I said similar; that is, they will never allow Bitcoin, they will try to innovate and develop this system. Bitcoin-is a product that they see as a competitor, a product that has the ability to revolutionize the banking and financial world. Due to the threat posed by Bitcoin, competitors will continue to suppress its development by implementing a strategy of fear, uncertainty, and doubt.