Google’s Latest Move May Prove Fatal For The Industry Worth $1 Trillion?

Must Read

Zomato Sets Eyes On $10.2 Billion Online Grocery Delivery Market in India

The 21-day nationwide lockdown imposed in India due to the Covid-19 outbreak fueled a massive change in...

Billionaire Mark Cuban’s Invaluable Advice for Startups in Crisis!

In an interview with CNBC last week, owner of NBA’s Dallas Mavericks, Mark Cuban, spoke out about...

Over 13.6 Crore Jobs in India Would Be Lost Due to Coronavirus Outbreak!

The 21-day lockdown induced by the deadly outbreak of the Covid-19 has completely dismantled and disrupted the...

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?

Advertisements

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 yearBitcoin, Ethereum, Ripple, Bitcoin Cash and Litecoin are the top five most popular cryptocurrencies, worldwide.

Advertisements

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Facebook Messenger Desktop App: The Rise Of Zoom Has Caught The Attention Of Zuckerberg?

Facebook Messenger Desktop app is making waves, and all because of an unexpected and sudden rise of...

A New Coronavirus Scam Is So Lucrative That People Are Falling Prey To Scammers Easily!

Fraudsters are out once again to steal your money and this time they are banking on a new Coronavirus scam.

What Businesses Need to Know About the Instagram Algorithm in 2020

Every social media platform, whether it’s Facebook or Instagram, is driven by an algorithm that controls the content exposure. This is the...

GRE And TOEFL Exams Now Will Be Undertaken From Home: Will Covid-19 Redefine Education Sector?

The sudden outbreak of the deadly pandemic Covid-19 has forced the existing education systems around the world to now rely on digital...

Over 13.6 Crore Jobs in India Would Be Lost Due to Coronavirus Outbreak!

The 21-day lockdown induced by the deadly outbreak of the Covid-19 has completely dismantled and disrupted the entire job market in India....

India Is Losing $4.6 Billion Due To Lockdown Every Day [REPORT]

The amount of havoc the Covid-19 outbreak and all the measures that have been imposed in place to curb it wreaked on...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This