We have often discussed cryptocurrencies in the context of regulation. On occasion, we even examined how the pricing of crypto currencies is influenced based on regulation. More often than not, we have concluded that regulation has little say over how cryptocurrencies fare when it comes to how much they are worth. Apparently market forces have a much tougher say in what is going on.
Not so long ago, Facebook banned cryptocurrency ads from its platform. The move was hailed by some and fretted as the onset of tougher times for crypto lovers everywhere. However, Facebook were trying to do a simple thing – pick up the slack for governments. With fraudsters advertising freely on the network and promising gullible customers limitless wealth.
The fact that people rarely turn a pretty penny by clicking ads anywhere has slowly dawned on a number of people who have greedily and unwisely investing where there was no investment opportunity to begin with. Facebook has acted quickly to crack down on information that is both misleading and deceptive, and all due to their credit.
Even though Facebook’s ban had little effect on the pricing of cryptocurrencies, Google’s latest ad ban surely amounts to something. Announced on Thursday, Google has aligned itself with regulators and Facebook in pursuing more regulatory scrutiny on the field of cryptocurrencies. More the Internet giant is now a self-styled defendant of people’s rights and it is on a mission to uproot misleading content.
The repercussions for digital coins has been quite substantial, with Bitcoin traded at $7,600 on Thursday, compared to $8,200 before that. Even though this has not been such a substantial dip, compared to some of the older ones we know of, it is still quite a marked one. The value of cryptocurrencies in general has slid $60 billion, nobody can tell how, and what the future will bring now.
What will follow now?
For the most part, cryptocurrencies react in two distinct ways to regulation and news. Their price either jumps on the news and soars ahead uninterrupted, or they fold so much that people are beginning to fear how much longer they have. Bitcoin’s latest instalment of horror-inducing piece of private legislation has had the latter effect. It is understandable why, too. Google manages the whole fabric of the Internet, and to expect such missives not to have a negative effect is bad.
However, if Google banned all ads featuring ‘deceptive ways to make money,’ we would not witness national currencies collapsing at all. The fact is, this dip in the pricing of cryptocurrencies points to something worrying. Bitcoin and the fraternity of cryptocurrencies have been depending on rather nefarious ways of accumulating value. The fact that banning the blatantly illegal activities linked to Bitcoin would send the entire cryptocurrency plummeting has also to do with the fact that every third Bitcoin transaction is allegedly carried out to fund some sort of illegal activity, including supporting terrorism.
Why is this decision coming now?
If we look at the facts, three months ago, Google searches began their heady climb to prominence. With this in mind, it is understandable why authorities would seek to clamp down on ill meaning who have tried to cash in on people’s desire to acquire bitcoin and other riches.
Google’s ban is not unjust, too. Much like Facebook, Google is only focusing on the ads that may have nefarious activities linked to them. Behind the ban, Google cites the successful taking down of 3.2 billion bad ads back in 2017 that had to do with misleading information about cryptocurrencies. With this in mind, you will quickly notice that the new measures are rather more inclusive and they are intended to tackle mis-advertising en masse, rather than focusing on separate entries.
More things will stem from this decision. Fraudsters will learn to advertise themselves more efficiently if this change holds. However, Google may be hot on the trails of such individuals by imposing more drastic measures against certain types of activities. While it is not a good idea to ask Google to ban and impose limitations to what can circulate on the network, it is equally damaging to leave misleading content that has been syphoning money off people who have been hopeful to make a good investment.
With this in mind, it is understandable why Google would seek to impose a semblance of order, and we are quite happy to say that we support a similar move. Cryptocurrencies must not be part of the scheming of criminals.