Bitcoin (BTC) and other cryptocurrencies are making headlines in the mainstream media as they continue to make uncontrolled swings in the digital currency market. Cryptocurrency, based on the stellar technology of Blockchain, is a disrupting force. Today the internet is flooded with ads and websites which are offering cryptocurrency trading advice and crypto market insights. A number of third-party companies are provoking people to invest in cryptocurrencies through promotions and advertisements.
Google has taken a hard-line approach to the ads related to cryptocurrencies and initial coin offering (ICO). In one of its Financial Services Policy updates, Google has decided to ban advertisements promoting cryptocurrencies and the related content which includes initial coin offerings (ICOs), cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice, starting from June this year. A similar move was taken by Facebook earlier this year.
But, why the move by Google is being considered as a major setback for cryptocurrency market?
Google and Facebook are currently dominating the global digital ad market. It was the first ever in the history when global digital ad spending beat TV ads to reach $208.8 billion in 2017. Both the internet giants played a vital role in the unprecedented growth in digital ad spending by accounting 61% of share. By 2022, brands would be spending more marketing dollars on digital, eventually making the global digital ad spending to grow to $347.7 billion.
In Q4 2017, Google’s parent company Alphabet’s revenue climbed to all-time high of $32.3 billion from $26.1 billion in Q4 2016. Out of that, more than 84% of revenue comes from Google’s ad business.
To make sure its ecosystem is safe and effective for advertisers, the company has removed more than 3.2 billion ads last year that violated its advertising policies. Surprisingly, that’s more than 100 bad ads per second.
Even though BTC and other digital currencies experienced a downward growth in the last three months, according to the CEO of Kraken (US-based Cryptocurrency Exchange), Jesse Powell, Cryptocurrencies would see accelerated growth in the coming months of this year. Though many business magnates and market experts believe that the crypto money is likely to show a steady upward growth this year, yet there is no evidence that the world will accept cryptocurrencies as an alternative to traditional currencies.
According to the last year report, the total value of cryptocurrency transactions in 2017 has risen 15x as compared to the previous year. Bitcoin, Ethereum, Ripple, Bitcoin Cash and Litecoin are the top five most popular cryptocurrencies, worldwide.
According to Tim Enneking, chairman of Crypto Asset Management, all the laws of economics apply – in full – to cryptocurrencies. So perhaps it shouldn’t be treated any different from the fiat currencies.
Today, there are a lot of businesses that involved in the domain of crypto money. Moreover, a lot of people and organizations are trying to become adept in the know-how of this disrupting force. For the first time in the history, when people are seeing the possibility of a financial freedom that isn’t aligned with the interest of the global cooperatives, government or banks.
But, apparently, these figures don’t involve the revenue generated through the advertisements of trading companies, ICOs, wallets and other cryptocurrency related contents. The major factors that affect the revenue are governed by the actual number of cryptocurrencies being circulated in the world, exchange of digital assets and cryptocurrency trading.
Bitcoin (BTC), the most valued cryptocurrency by market capitalization, went down by 2% after Google’s announcement, the current value lying at $8765 as of 4:36 PM IST. Other cryptos, Ripple and Ether also pared gains.
Bitcoin is being referred as high-risk financial assets. Crypto experts are calling it the future gold. If the companies operating in the domain of finance technology or let alone any tech-savvy community can derive methods of ideal financial exchange of digital money – it will be a revolution.
Yet, on the downside, apart from the lack of underlying value, since its inception in 2009, the price volatility is one of the biggest weaknesses of cryptocurrencies to believe it as an alternative currency.
As the Google’s decision to ban ads of cryptocurrency has already shaken the investors and entrepreneurs in the industry we won’t be surprised to see people shying away from cryptocurrency until the dust settles down. All said and done, it would be interesting to see how much Google’s decision will affect the industry which is estimated worth $1 trillion in 2018.