Social media and the internet played a major role in the promotion of cryptocurrencies. It has allowed Bitcoin to reach near $20K level in mid-December last year. In fact, Google searches for Bitcoin and cryptocurrencies were quite high during this time.
However, with pressure from regulators, giant social media and internet platforms from Facebook to Google has adopted to the changing times and banned crypto advertising.
Recently, Google took a shot at the crypto market in an advertisement of its new phone, the Pixel 3. the advertisement shows how a Google Assistant can screen calls and tell you why someone is calling. For instance, if it’s a telemarketer, it can then be marked as spam.
In its ad, one of the actors said that his electricity bill is very high that month. He said that “Well cryptocurrency mining takes a lot of energy”. The reply was “cryptocurrency, that money’s not real”.
He then replies that “Yeah, well I got news for you—money isn’t real”. She then said that “You gonna live that lie?”.
Changes in Google’s Advertising
In September, Google eased its rules and regulations for cryptocurrencies. It followed what Facebook did. Facebook was the first to change by allowing preapproved ads for cryptos and “related content”. However, Facebook maintained banning initial coin offerings, which has been known as a scam-ridden area in the industry. In fact, according to a study, 1 in every 5 ICO is actually a scam.
Google decided in September to allow advertisement of regulated crypto exchanges from the US and in Japan. According to Google’s statement “Advertisers will need to be certified with Google for the specific country which their ads will serve. Advertisers will be able to apply for certification once the policy launches in October”. They also added that “This policy will apply globally to all accounts that advertise these financial products”.
Divided on Crytpo
It is true that there is still no unifying opinion regarding cryptocurrencies. While the US Securities and Exchange Commission has called Bitcoin and Ethereum as commodities, it also hesitated to approve Bitcoin ETF applications in recent months over fear of price manipulation.
In addition to this, the International Monetary Fund also issued a warning regarding the fast-rising crypto industry.
It is true that social media and modern internet has played a role in the growth of the industry. Though regulators have taken precaution in the industry, regulatory clarity is now bringing in institutional investors. Though the influx of institutional investors isn’t as fast as some would expect, ICE and Goldman Sachs have now dabbled in the crypto market.
Cesspool or an Industry that Holds a Lot of Potential?
If you are going to ask Nouriel Roubini, the NYU economist who successfully predicted the 2008 financial crisis, he believes that cryptos are a “stinking cesspool”. Before this tweet, he called cryptocurrencies the “mother and father of all scams and bubbles”. He even said that unlike the internet that has already been utilized by billions once it was available to the public, it wasn’t exactly the case for the crypto industry. Bitcoin is still currently floating above $6,200, quite far from its all-time high last December.