Bitcoin Aversion and Crypto Crashes : Part 1

The sharp correction in cryptocurrency markets in May (and June) 2022, especially the dramatic price collapse of ‘stablecoin’ terraUSD (or UST) and its sister token Luna, was covered extensively by the press. We looked at 4,400 reader comments that were posted in response to news and opinion pieces during the crisis. We focus on several stories published online by BBC News and Fox News (Business). We add to this, two opinion pieces that appeared in the New York Times along with a Fox News “reply” to one of those pieces. Across the board, reader comments reveal a deep divide between those who believe that cryptocurrency is a scam and those who believe that cryptocurrency represents the future. The former certainly outnumber the latter among the readers who posted comments to these stories. On the face of it, aversion to financial innovation can be explained easily. People generally do not like change, especially when the consequences of embracing change are uncertain