Bitcoin in the Headlines is a weekly analysis of industry media coverage and its impact. Boring weeks in bitcoinland are far and few between. Last week’s headlines – predominately dominated by the digital currency’s dizzying price spike – gave way to a different form of narrative as journalists from the mainstream media sought to discern its meaning and implications. In so doing, the coverage arguably shifted from largely positive articles to more controversial explorations of bitcoin that were sometimes found to be at odds with common consensus among the technology’s observers. The Financial Times was even called out by industry insiders, who were unhappy with the way the publication linked both bitcoin and its recent price increase to an alleged online pyramid scheme run by a convicted Russian fraudster. Elsewhere, the possibility of Satoshi Nakamoto winning a Nobel Prize for his contribution to economics caught the attention of reporters from across the globe, with the news reverberating even among foreign-language news outlets . A bitcoin pyramid Writing for The Financial Times, Dan McCrum wrote a piece that set out to explore bitcoin’s connection with the underworld of pyramid schemes. McCrum set the scene by introducing the reader to General Gregor MacGregor, who returned to Britain in 1821 a war hero. His stories, the journalist explained, promoted investors to purchase land certificates and £200,000 in Poyaisian sovereign bonds. Unfortunately, though, McCrum noted that Poyais did not actually exist. The article then continues, perhaps controversially, to note that MMM – a "social financial network" – run by convicted fraudster Sergey Mavrodi and powered by YouTube and bitcoin was the most recent example of a pyramid scheme. He said: "New members must purchase bitcoin to join MMM, and then receive a bonus for online testimonials describing their improbably profits. The fad helped […]
