Major cryptocurrencies like Bitcoin, Ripple, Ethereum and Litecoin do not need advertisement, because they are well-known in the investment community.
Yet investors seem to think otherwise.
So when they learned that Google had announced that it is planning to ban cryptocurrency advertisements on its websites, they turned bearish.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don't own any Bitcoin.]
Google’s ban comes roughly two months after Facebook came up with its own plan to ban cryptocurrency advertising in its own website, sending cryptocurrency prices lower back then.
But banning cryptocurrency advertising on the part of Facebook, Google and other websites is actually cause to be bullish, not bearish, over the long term. At least for major cryptocurrencies for major cryptocurrencies like Bitcoin, Ethereum, Ripple and Litecoin.
There are a number of reasons for that. One of them is that these currencies do not need advertisement.
They are already known among investors.
Another reason is that the ban will help weed out scam coins from the market, and therefore, install confidence among investors in legitimate coins. “While this isn’t the best news, it could be a good thing for cryptocurrency,” says Craig Cole of CryptoMaps.info. “The ban will help solidify the market and weed out scam coins and illegitimate actors looking to get rich quick, providing stability. This ban doesn’t mean that cryptocurrency is going away. I believe it will ultimately strengthen it.”
Weeding out scam coins, in turn, will eventually limit the overall supply of coins, and therefore, help the prices of major cryptocurrencies rally.
Not everyone shares these points. Shidan Gouran, President and COO of Global BlockChain is one of them. “This ban provides some short-term protection to consumers against unscrupulous cryptocurrency advertisers, but there is absolutely no doubt that this will harm the cryptocurrency sector as a whole - which means it will be met with much resistance across the board,” says Gouran.
Meanwhile, cryptocurrencies need to gain acceptance among users, which takes a great deal of time. And they need to be saved from big governments, big banks, and hackers.
That’s why investors should be extremely cautious on betting on the future of any cryptocurrency, even on the major ones.