Bitcoin price falls below $8k after Google announces ban on ads
The prices of bitcoin on Wednesday yesterday 14th/03/2018 fell by 9%, a little under $8,000 after Google, announced plans to ban adverts of cryptocurrency.
i) Google Joins Facebook
Google, the world largest online ad provider, Wednesday announced plans to ban all crypto currency related ads.
This follows a similar decision taken in January 2018, by Facbook, the second largest online ad provider.
Announcing an update to its policy on financial services, Google revealed that it will restrict all ‘crypto currency and related content’ ads starting June this year.
ii) The immediate effect
And the effect was immediately felt as Bitcoin prices dropped by 9% to below $8,000. It was similar in January after Facebook effected its ban on ‘binary options, Initial Coin offerings popularly known as ICO’s and crypto currencies.
Bitcoin fell by as much as 12%.
This is the lowest drop in bitcoin price lately, following its drop from $11,000 to below $9,000 last week after news that accounts of Binance, the Hong Kong-based exchange had been compromised
iii) Long term implications
What are the long term implications of this ban on the crypto industry?
Truth to say, the google ban is not ideal for cryptocurrencies, especially for ICO campaigns which are mostly marketing dependent, however for already established digital currencies such as bitcoin, i don't see how it will have a strong long-term impact.
Digital currencies such as bitcoin, unlike ICO's are no longer that dependent on marketing ads to the tune sufficient to have any kind of ban on the same, to significantly negatively impact on their performance.
The popularity of bitocin, for instance, continues to grow despite the immediate glitch on its price.
In the thoughts of Brian Kelly, the CEO of BKCM, the crackdown on Cryptocurrency related content ads could play to the advantage of digital currencies.
"It's a good thing for the industry, Facebook and Google ads were always a red flag for me," Kelly said. "It's not having any impact on price."
However Jack Tatar, the co-author of “Cryptoassets: The Innovative Investor’s guide to Bitcoin and Beyond” expresses pessimism, observing that any break in bitcoin price below $8,000 “will be disconcerting”.