FUD is an acronym for “Fear, Uncertainty, and Doubt”. FUD generally means any news that impacts the market in a negative way. This is a strategy to create a certain opinion about a specific coin or the market overall. These usually encompass false or fake information that creates fear and doubts in the mindset of the investors whether the coin will hold a promising future or not. In the past, different FUDs have become really famous and damaged the market to a lot of extent especially in the case of BTC. Crypto enthusiasts use the term FUDsters to refer to the people who spread false information about the market. There are certain topics that the FUDsters like to talk about for example:
- Crypto Market is a bubble and its crash is inevitable.
- Crypto Market has led to the increase of cybercrimes.
- Crypto mining requires a huge amount of energy and it is harming the environment.
- Governments and countries are banning crypto markets.
Crypto traders have taken up the internet many times and have tried to tell the community how these naysayers are wrong and there is nothing like this in the crypto market. Whenever the market is dipping and if unfortunately, it has dipped to a significant level, these FUDsters come out of their holes and start spreading misleading information that becomes even more harmful for the community.
HOW, you ask?
What happens is that if some credible websites and influential people somehow talk about that FUD, the retailers would sell those coins associated with the news and get out of the market because they think that the negative news is going to damage their portfolios. When they take out their investments out, it results in even more damage to the market. On the other hand, the smart people who have been in the market for a long time and understand the nature of the news consider it as a buying opportunity and buy those dips. Diamond hands always make more profit than the weak hands.
How FUDS and Negative news have collaborated to the Fall of BTC and the market.
Negative news results in tension and fear in the market. Here is a few recent negative news that has damaged the market
TESLA to stop accepting BTC as a mode of payment
Elon Musk tweeted about the news that TESLA is no longer accepting BTC as a form of payment over the concern that BTC uses high energy and its damaging the environment. This news resulted in a lot of retailers selling their BTC and damaged the market. But Musk said that the company has not sold any of its BTC holdings and used the term “Diamond Hands”. Later according to Musk he had dig deeper and said that TESLA might resume its transactions using BTC in the future.
CHINA to Crack Down on the business
China has long opposed the crypto market. Quite a surprise as major mining of the BTC happens in China. This news also damaged the market. It might be good news for the future as the mining of bitcoin won’t be concentrated in a single place anymore.
INDIA Crackdown on Crypto Market
News about India banning crypto also impacted the crypto market. Amidst the government regulations now the RBI and the Government is looking for a middle path as the crypto market has gained a lot of attention during the past months.
Crack Down on Binance
Crackdown also started on Binance regarding its regulation regarding alleged illegal working. Thailand has also filed a case against the company regarding the illegal operation without a license.
“HOPE IS A GOOD THING”
As where all the FUDs have damaged the market, EL Salvador presented the legal tender bill to adopt BTC, which got accepted. All the residents of El Salvador are to be given $30 in BTC. The country is also started its volcano-powered mining rig for the BTC.
Several negative news has impacted a lot but the market has sustained the damages and is on its way to recovery. We can believe that in the midst of all the fear, the market would once again move on to its way towards adoption.
