FT Publishes Triple Bitcoin Critique as Crypto Faces Market Pressure
Bitcoin’s recent 35% price drop has drawn a wave of criticism, and the Financial Times (FT) made a notable statement on Wednesday by featuring three critical articles on its website. The U.K.-based publication has long expressed skepticism toward cryptocurrencies, and its coverage this week reinforced that stance.
The first article, “The fatal flaw in using bitcoin as a currency,” argued that bitcoin effectively experienced a 900% annualized inflation rate during its decline. The piece contended that bitcoin’s fixed supply prevents it from contracting when demand falls, unlike fiat currencies, which central banks can adjust to manage inflation. The FT framed this supply inelasticity as a fundamental flaw for bitcoin as a currency.
The second story, “Infinite money glitch, meet arithmetic,” focused on Strategy (MSTR) and its approach of issuing shares or debt to purchase bitcoin. The report claimed this model is now vulnerable, as spot bitcoin ETFs have removed any premium for MSTR stock, potentially forcing sales of bitcoin. While crypto analysts argue that a so-called “death spiral” is overstated, the FT presented it as an example of arithmetic limitations meeting market realities.
The third article, “Crypto hoarders dump tokens as shares tumble,” widened the critique to other digital treasury companies following similar strategies. Many are now trading below the market value of their bitcoin holdings and selling tokens to fund buybacks or service debt. The FT warned that most of these firms could face significant risk. Yet some bitcoin proponents see a silver lining: such shakeouts could redirect capital back into bitcoin itself rather than the management teams of these once-flashy ventures.
The timing of FT’s coverage is notable. Bitcoin remains up more than 350% over the past five years, even as the U.K. government proposes further tax increases to bolster public finances.
Satoshi Nakamoto famously embedded the message “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks” in bitcoin’s genesis block. If written today, the message might read: “Chancellor on brink of £26B in new taxes.”
