Covering bitcoin while owning bitcoin

“The web of undisclosed conflicts in the bitcoin world is almost impossible to disentangle, especially since one of the celebrated features of cryptocurrencies is that they can be held secretly.”

2018 will be the year of inadequate bitcoin disclosures.

In April 2013, Farhad Manjoo (then at Slate, now at The New York Times) bought 7.23883 bitcoins for $1,000, explaining that he “wanted to buy bitcoins as pure, shameless speculation.” The speculation didn’t last long: He ended up selling the coins within a month, for a profit of $152. Now, of course, he can make mordant jokes about not holding on to them: as I write this post, those coins would be worth more than $118,000.

Lots of journalists were playing around with buying bitcoin at the time. Kevin Roose (then at New York, now also at the Times) bought one bitcoin (“I thought it might make me a few easy dollars”) and then sold it for a $5 loss. He, too, is mordant on Twitter, as is Kashmir Hill (then of Forbes, now at Gizmodo Media Group), who spent 10.354 bitcoin on a blowout sushi dinner in May 2013. Those coins are worth some $169,000 today.

As all those journalists know, however, it’s really just as well that they didn’t hold on to their coins. Writing first-person articles about using bitcoin for smallish transactions is one thing; being personally invested in bitcoin to the tune of $100,000 or more is something else entirely. In 2018, as bitcoin futures start being traded on established exchanges, the cryptocurrency is undeniably going to be a multi-billion-dollar asset class, and that’s going to raise some pointed questions in the world of journalism.

Most importantly, the days of bitcoin stunt journalism are over. Today, if you write about bitcoin, you can’t ethically own it, any more than you can own shares directly in companies you write about. Journalists covering this beat should not be directly financially invested in bitcoin going up rather than down, especially not when potential bitcoin profits can end up dwarfing their dollar salaries.

Similarly, when journalists talk to and quote any of the thousands of blockchain experts out there, they should make absolutely clear the degree to which those experts are talking their own book and are getting extremely rich off the current cryptocurrency bubble. If it’s hard for a journalist to be objective about something she’s personally invested in, it’s even harder for an expert to talk about bitcoin’s rise without being affected by the fact that it has made her millions of dollars in profit.

These facts need to be spelled out because they’re not obvious. In most journalism, there has been a workable distinction between principals and analysts; you talk to the latter about the former, for instance by phoning up a university professor to ask about the founder of a unicorn company. In that situation, it’s generally assumed that the founder has become rich, while the academic has no financial stake in the company’s success.

With bitcoin, by contrast, no one really has a clue who owns what. A handful of individuals like to talk very loudly about how they bought bitcoin cheap and then made millions, but a lot of people, more sensibly, like to keep such things relatively private. When those people are interviewed, it’s often impossible to know how invested they are, quite literally, in bitcoin’s ongoing price rise.

And let’s not kid ourselves that all the journalists covering bitcoin have refrained, in a high-minded manner, from acquiring any coins themselves. Quite the opposite: Many of the publications covering the blockchain space are quite deliberately staffed by journalists who have long believed that bitcoin, blockchain, and cryptocurrency will transform the world. Insofar as those journalists have now become wealthy through their cryptocurrency holdings, they are going to be more invested in their thesis than ever.

The job of journalism is to enlighten; no one should want to muddy the bitcoin waters even more than they are already. But the web of undisclosed conflicts in the bitcoin world is almost impossible to disentangle, especially since one of the celebrated features of cryptocurrencies is that they can be held secretly. We’ll see more disclosure in 2018 than we have until now. But it won’t be nearly enough.

Felix Salmon is host and editor of Cause & Effect.

Renée Kaplan   The year of quiet adjustments (shhh)

Miguel Castro   The arrival of the impact producer

AX Mina   Memes and visuals come to the fore

Yvonne Leow   The rise of video messaging

Jared Newman   Venture funding and digital news don’t mix

Almar Latour   Conquering calm

Tamar Charney   We get serious about algorithms

Dan Newman   A return to trust

Mary Meehan   Real lives are at stake in rural areas

Sally Lehrman   Trust comes first

Kelsey Proud   No, no, no

Bill Keller   A growing turn to philanthropy

Rachel Schallom   Better design helps differentiate opinion and news

Tanya Cordrey   Finally, the seeds of radical reinvention

Eric Ulken   The year local publishers get smart(er) about change

Mariano Blejman   News games rule

Nushin Rashidian   Publishers seek ad dollar alternatives

Alfred Hermida   Going beyond mobile-first

Edward Roussel   Eyes, ears, and brains

Dannagal G. Young   Stop covering politics as a game

Nicholas Diakopoulos   Fortifying social media from automated inauthenticity

Jennifer Brandel and Mónica Guzmán   The editorial meeting of the future

David Skok   Finding an information-life balance

Mi-Ai Parrish   Blockchain and trust

Laura E. Davis   Writing answers before you know the question

Alexios Mantzarlis   Moving fake news research out of the lab

Jennifer Choi   Standing up for us and for each other

Paul Ford   Go global

Feli Sánchez   The year for guerrilla user research

Lucas Graves   From algorithms to institutions

Matt Carlson   Attacks on the press will get worse

Neha Gandhi   Filler killers

Jim Moroney   Newspapers have to be good enough for readers to pay for

John Keefe   Scooped by AI

Zizi Papacharissi   Women come back

Taylor Lorenz   Social and media will split

Nathalie Malinarich   Peak push

Borja Echevarría   TV goes digital, digital goes TV

Richard Tofel   The platforms’ power demands more reporters’ attention

Christopher Meighan   Passive partnership is in the rearview

Sarah Marshall   Loyalty as the key performance indicator

Sara M. Watson   Feeds will open up to new user-determined filters

Pete Brown   Push alerts, personalized

Marie Gilot   No assholes allowed

Kim Fox   Audience teams diversify their approach

Manoush Zomorodi   Self-help as a publishing strategy

Nancy Watzman   Know thy TV

Felix Salmon   Covering bitcoin while owning bitcoin

Valérie Bélair-Gagnon   Seeking trust in fragmented spaces

Craig Newmark   Working together toward sustainable solutions

Kyle Ellis   Let’s build our way out of this

Michelle Ferrier   The year of the great reckoning

Alastair Coote   The year of self-improvement

Nikki Usher   The year of The Washington Post

Jennifer Coogan   The future is female

Sue Schardt   Jump the niche

Alan Soon   The rise of start of psychographic, micro-targeted media

Carrie Brown-Smith   Transparency finally takes off

Kawandeep Virdee   Zines had it right all along

Rubina Madan Fillion   Unlocking the potential of AI

Charo Henríquez   Training is an investment, not an expense

Mary Walter-Brown   Show a little vulnerability

Rodney Gibbs   Tech workers turn to journalism

Frédéric Filloux   External forces

C.W. Anderson   The social media apocalypse

Rick Berke   Value is the watchword

Aron Pilhofer   We can’t leave the business to the business side any more

Michael Kuntz   The only pivot that might work

Millie Tran and Stine Bauer Dahlberg   (Hint: It’s about your brand)

Ariana Tobin   Too tired to tap

Amy King   Let’s amplify visual voice

Rodney Benson   Better, less read, and less trusted

Usha Sahay   Wallets get opened

Corey Ford   The empire strikes back

Daniel Trielli   The rich get richer, the poor scramble

Lanre Akinola   Making noise is not a strategy

José Zamora   Revenue-first journalism

Emily Goligoski   Looking beyond news for inspiration

Juliette De Maeyer   A responsible press criticism

Jake Levine   The return to now

Carlos Martínez de la Serna   The new journalism commons

Jamie Mottram   From pageviews to t-shirts

Monique Judge   Letting black women tell their own stories

Julia Beizer   A longer view on the pivot

Helen Havlak   Keywords, not publishers, power the world’s biggest feeds

Tracie Powell   The muting of underserved voices

Mira Lowe   The year of the local watchdog

Corey Johnson   The pro-fact resistance

Brian Lam   Sketchy ethics around product reviews

Federica Cherubini   The rise of bridge roles in news organizations

Imaeyen Ibanga   Longform video leads the way

Tim Carmody   Watch out for Spotify

Ståle Grut   Reclaiming audience interaction from social networks

Matt Thompson   Here come the attention managers

Alice Antheaume   Are you fluent in AI?

Vanessa K. DeLuca   Women’s voices take center stage

Ernst-Jan Pfauth   Publishing less to give readers more

Debra Adams Simmons   And a woman shall lead them

Rachel Davis Mersey   AI, with real smarts

Umbreen Bhatti   The trust problem isn’t new

Betsy O'Donovan and Melody Kramer   Skepticism and narcissism

Nicholas Quah   Stop talking trash about young people

Damon Krukowski   Reviving the alt-weekly soul

Amy Webb   Listen to weak signals

Rasmus Kleis Nielsen   The Snapchat scenario and the risk of more closed platforms

Burt Herman   Things get real

Joanne Lipman   Journalists inventing revenue streams

Jassim Ahmad   Thriving on change

Dheerja Kaur   Fun with subscription products

Errin Haines   At the ballot, it’s time to count black women

Emma Carew Grovum   Newsroom culture becomes a priority

Francesco Marconi   The year of machine-to-machine journalism

Marcela Donini and Thiago Herdy   Collaboration is the way forward for Brazilian journalism

Justin Kosslyn   The year journalists become digital security experts

Kathleen McElroy   Building a news video experience native to mobile

Jim Brady   With the people, not just of the people

Raju Narisetti   Mirror, mirror on the wall

Evie Nagy   Pivot to mobile video frustration

Kinsey Wilson   Facebook and Google: Help out or pay up

Sydette Harry   Listen to your corner and watch for the hook

Lam Thuy Vo   Breaking free from the tyranny of the loudest

Sam Ford   The year of investing in processes

Julia B. Chan   Looking for loyalty in all the right places

Michelle Garcia   Navigating journalistic transparency

Vivian Schiller   Pivot to tomorrow

Doris Truong   Computer vision vs. the Internet vigilantes

Ruth Palmer   Risks will grow for news subjects — especially minorities

Cristina Wilson   The year of the Instagram Story

Andrew Ramsammy   The year ownership mattered

S. Mitra Kalita   The arc of news and audience

Trushar Barot   The Jio-fication of India

Mariana Moura Santos   Think local, act global

Raney Aronson-Rath   Transparency is the antidote to fake news

Matt Boggie   The intellectual equivalent of the Dead Sea

Andrew Losowsky   The year of resilience

Luke O'Neil   The end is already here

Basile Simon   We need better career paths for news nerds

P. Kim Bui   The reckoning is only beginning

Pablo Boczkowski   The rise of skeptical reading

Amie Ferris-Rotman   More female reporters abroad (please)

Susie Banikarim   R.I.P. Pivot to Video (2017–2017)

Jarrod Dicker   Honesty in advertising

Caitlin Thompson   Podcasting models mature and diversify

Kristen Muller   The year of the voter

Joyce Barnathan   It will be harder to bury the news

Gordon Crovitz   Serving readers over advertisers

Heather Bryant   Building the ecosystems for collaboration

Andrew Haeg   The year journalists become relationship builders

Sam Sanders   Shine the light on ourselves

Juleyka Lantigua   Women of color will reclaim and monetize our time

Niketa Patel   Live journalism comes of age

Eric Nuzum   Beyond the narrative arc

Caitria O'Neill   The new court of public opinion

Dan Shanoff   You down with OTT? (Yeah, DTC)

Cory Haik   Suffering from realness, pivoting to impact

Cindy Royal   Your journalism curriculum is obsolete

Jesse Holcomb   Information disorder, coming to a congressional district near you

Adam Thomas   Sharing is caring: The year of the mentor

Joanne McNeil   Gatekeeping the gatekeepers

Hossein Derakhshan   Television has won

Hannah Cassius   The year of the echo-chamber escapists

Elizabeth Jensen   Show your work

Mandy Velez   texting is lit rn, fam

Mario García   Storytelling finally adapts to mobile

Monika Bauerlein   The firehose of falsehood

Ray Soto   VR reaches the next level

Jacqui Cheng   Retailers move into content

Tanzina Vega   It’s time for media companies to #PassTheMic

Pia Frey   Address users as individuals

Will Sommer   The year local media gets conservative

Mike Caulfield   Refactoring media literacy for the networked age

Jessica Parker Gilbert   Design connects storytelling and strategy

Claire Wardle   Disinformation gets worse

Molly de Aguiar   Good journalism won’t be enough

Steve Grove   The midterms are an opportunity

Matt DeRienzo   A recession, then a collapse