Everyone from law enforcers to bankers is adopting blockchain technology. Not everyone, however, is welcoming this technology and the cryptocurrencies which are built on top of it with open arms.
Google’s recent cryptocurrency ad ban is evidence of this fact.
But what does this ban mean for the cryptocurrency industry? Are Bitcoin, Ethereum, and other major cryptocurrencies doomed? And will this ban throw wrenches in cryptocurrency investors’ plans?
The answer isn’t as bleak as you’d think. Here’s our take on things:
The Value of Cryptocurrencies Could Take a Hit
Here’s the deal:
Yes, the bitcoin price (and the prices of other popular crypto coins) might fall slightly as a result of this ban. Cryptocurrency’s value is volatile. New constraints and regulations frequently affect the value of cryptocurrencies.
But established cryptocurrencies have already gained enough traction to survive the ad ban. They have enough investors and brand awareness to weather the storm.
The real losers here are the lesser-known cryptocurrencies.
These more obscure cryptocurrencies are already struggling to stay afloat. Dead Coins, a database of extinct crypto coins, reports that there are currently around 800 tokens in the crypto-coin graveyard.
And these tokens went extinct when advertising cryptocurrencies via Google were allowed. Just imagine how many more small-time currencies will go extinct with the ban in place.
The Legislation Might Better the Industry’s Reputation
As we said earlier, the value of major cryptocurrencies will take a hit with this ban in effect. In fact, big cryptocurrencies have already suffered losses this year.
The biggest shock here?
These new regulations could benefit the cryptocurrency industry in two major ways:
- Customers could become less distrustful of the industry as a whole. Cryptocurrency scams are becoming more common. This ban will decrease the number of negative encounters customers have with cryptocurrency.
- Many cryptocurrency firms will have to develop a customer focus. They will have to find new, engaging ways to attract more investors.
Notice that both points emphasize positive customer experiences. Those positive experiences are essential in today’s cryptocurrency industry. Too many consumers associate it with criminal activity and high-risk investments.
This ban will also weed out criminals who wish to take advantage of consumers or launder money. This decrease in criminal activity will decrease the need for new, stricter regulations.
The Bottom Line: The Ban Will Have Pros and Cons for the Cryptocurrency Industry
The cryptocurrency ad ban will have adverse effects on the cryptocurrency industry. The value of cryptocurrency could decrease, and lesser know coins will continue to struggle.
The potential effects aren’t all bad. This ban could help the cryptocurrency better self-regulate itself. That self-regulation could create better customer experiences.
So if you’re worried about the value of your crypto assets or concerned about your crypto firm’s future? Don’t worry; this ban isn’t a death sentence.
And if you have any questions about the cryptocurrency industry or comments about any cryptocurrency news you read here? Contact us and we’ll get back to you as soon as possible.