DEFINITION of FUD
FUD means Fear, uncertainty, and doubt. It is the acronym.
WHAT IT IS IN ESSENCE
It is a marketing term that is often in use to cast a shadow over a competitor’s product when your own is unable to compete.
It is a technique used by larger companies who have a large market share.
The first definition of this term came from Gene Amdahl after he left IBM to found his own company, Amdahl Corp, with this statement:
“FUD is the fear, uncertainty, and doubt that IBM sales people instill in the minds of potential customers who might be considering Amdahl products.”
It is often spread on social media or mass media. Hence, it can cause the price of a coin to drop. You will not find this on fundamentals or charts. But you can find in bad news that spreads around social media.
Many times the bad news has no confirmation in reality. And ends up being something silly like a popular talking heads opinion that Bitcoin is a bubble.
The fear, uncertainty, and doubt-inducing idea being spread around media can be referred to as FUD.
Just as an example: JPMorgan’s Dimon spread FUD by saying Bitcoin is a fraud that will eventually blow up.
HOW TO USE
In the context of cryptocurrencies, “FUD” can be anything which intends to install “fear, uncertainty, or doubt”. Usually to dissuade people from using Bitcoin. And instead only use fiat money.
Lately, it is also leveraging between cryptocurrency communities. Of course, in order to promote their own favorite currency.
However, there’s a difference between FUD and reasonable criticism. The latter is vital for any healthy community.
It becomes ”Fear, uncertainty, and doubt” when the point of those criticisms is to attack something. Rather than make it better.
It’s also worth to point is often lost on some communities, leading to all criticism.
Regardless of its constructiveness, being regarded as “FUD”.