Here are some of the potential effects
The search engine giant Google recently announced that it would be banning all adverts related to cryptocurrencies (like bitcoin) and cryptocurrency trading. This hefty measure is seen as fairly controversial by some, and there is a good chance that it may affect cryptocurrency trading in the future. In light of this, here are some of the potential effects which may come about as a result of Google’s actions.
Less Cryptocurrency trading
The first notable effect is that the ban will likely decrease the number of people flocking to trade the likes of bitcoin and ethereum (two of the most popular cryptocurrencies). With virtually no adverts relating to cryptocurrencies at all on the world’s most popular search engine, it makes sense that fewer people will be able to see the trading opportunities available to them.
Companies which offer the means to trade cryptocurrencies (such as exchanges) are likely to find it more difficult to reach out to new customers, and could well see a dip in profits as a result.
Decline in value
Those involved with online bitcoin trading will undoubtedly see some effect on the cryptocurrency’s value, at least in the short term, as traders react to the news of Google’s ban. Cryptocurrencies are known to be incredibly volatile by nature, and so their value is very sensitive to any developments like this.
Google’s ban could well harm the reputation of cryptocurrencies, as it suggests that they are risky and potentially harmful to those who trade them. This may cause those who own cryptocurrencies to sell them off, decreasing demand and lowering the price.
Little or no effect
Despite the ban on cryptocurrency adverts, it could be the case that there will be few or no longer term effects on the cryptocurrencies themselves. Whilst bitcoin did drop in value significantly when the news came through, it has since rebounded, and is showing strong signs of recovering.
Cryptocurrencies have already been making headlines as a result of bitcoin’s massive leaps in value last year, so it can be argued that Google’s ban will do little to stop the current surge in interest which has bolstered demand so significantly over the last few years.
Google’s ban on cryptocurrency adverts is more likely to affect companies offering cryptocurrency services than the cryptocurrency trading itself. Even then, the effects may well only last for a short period of time, given the current popularity of cryptocurrencies across the world.