FUD

“FUD” is an acronym used within the cryptocurrency industry, denoting Fear, Uncertainty, Doubt. It references instances when misleading or inadequately sourced information about Bitcoin is disseminated, predominantly via the mainstream media or digital platforms.

Understanding FUD

Often, the headlines of such content are crafted with a clickbait style to attract readers, while the article’s body may not be as damning as the title implies. Regrettably, many readers do not proceed beyond the headline, falling into the FUD trap.

A vivid example of FUD was seen in the bear market of 2018 when a stream of negative news about Bitcoin led to drastic price drops as Bitcoin holders, or ‘weak hands’, succumbed to the FUD and sold their assets. Such sources that propagate FUD are colloquially dubbed “FUDsters.”

Common FUD Themes

FUDsters habitually exploit several recurring themes to create alarm. Even though they aren’t limited to these, some persistent subjects include:

• Alleged banning of Bitcoin by various countries
• Concerns over energy consumption
• Claims of contributing to ‘boiling oceans’
• Assertions of having no practical use cases
• Comparisons with Ponzi schemes
• Equating Bitcoin to gambling

Mitigating FUD

If one starts to experience feelings of fear, uncertainty or doubt about their Bitcoin investment, it’s critical to halt consumption of such news. Instead, engaging in thorough research to gain factual insights can mitigate FUD’s disconcerting effects.