As Bitcoin hits all-time highs, the infinite wisdom of CNBC and the mainstream press surfaces again as a bizarre news piece suggests the start of an “inflationary period.”
Bitcoin Surge ‘Might Not Mean What You Think’ – CNBC
The segment from the network’s Trading Nation, which aired Thursday, also included commentators describing Bitcoin as a currency for “buying kidneys.”
“Bitcoin is surging – but that might not mean what you think,” an accompanying article reads.
Asked whether he had an “opinion” on Bitcoin, Dennis Davitt of Harvest Volatility Management said about among other things that he “really liked Bitcoin” but that “the big fear around Bitcoin is just one day when the governments come out and say, ‘We’re no longer going to allow this.’”
No mention was given to the cryptocurrency’s ongoing sustained price increase shaking off regulatory pressure – particularly in China – more effectively than at any time in its history.
Indeed, despite Bitcoin’s volatility becoming less and less, Davitt suggested that the most recent increases were, in essence, a bubble.
“What people don’t put together is that… Bitcoin is moving into an inflationary environment,” he continued. Bitcoin is, in fact, a deflationary currency due to its limited supply and is currently deflating at a rate of around 4%.
‘All The Blockchaining’
Nonetheless, Blockchain technology came in for more positive criticism – of sorts.
“In a world of armageddon, currencies will go by the way of the countries, but Bitcoin will still have value because of all the blockchaining that’s going on behind it,” Davitt forecast.
Commentators reacted to the piece and accompanying performance chart with ridicule, one Reddit user suggesting CNBC was “either stupid or has some agenda.”
With this, CNBC is slowly stooping to the level of CNN. The infamous comments made by US president Donald Trump about the network, in which he described it as “fake news” and “very fake news,” have gone on to make the politician an increasing ally of the cryptocurrency community.
Trump’s pick for budget chief in the form of ‘Bitcoin Senator’ Mick Mulvaney received positive feedback, along with close ties with crypto investor Peter Thiel.
Cashless Society Support
Fellow Trading Nation guest, Miller Tabak equity strategist Matt Maley, meanwhile voiced support for the “cashless society” being propagated by multiple governments worldwide.
Despite this is many cases being more of a ‘war on cash,’ Bitcoin has profited from increased use in crucible jurisdictions such as India and Venezuela. Maley said however that the cashless society “makes things easier for everyone.”
“It’s hard to be that bearish especially now that [Bitcoin] has become more mainstream,” he concluded.
What do you think about CNBC’s opinions? Let us know in the comments below!
Images courtesy of Shutterstock, CNBC, btcvol.info, plot.ly/~Bash