Bitcoin Price Drops as Tech Firms and Social Media Networks Ban Cryptocurrency AdsMarch 30, 2018
The price of Bitcoin continues to drop as social media networks and tech firms announced plans to ban ads relating to cryptocurrencies due to fear of reputational damage if users are deceived by such adverts. Bitcoin is currently worth $8,000 after plummeting from $11,500 at the beginning of March.
Facebook and Google have already banned cryptocurrency ads earlier this year. Twitter followed this move on March 27 and no longer allows cryptocurrency advertising. Regulators have warned consumers about the risk of investing in cryptocurrencies and scams, but most jurisdictions are only starting to discuss publicly how to regulate the industry and set advertising rules.
Companies have taken the initiative to deal with the matter on their own. Crypto-related ads are now blocked on LinkedIn. In February 2018, Snapchat began removing ICO adverts that regulators say are prone to fraud and lack transparency. The company did not state whether it would also ban cryptocurrency wallets, unregistered exchanges and individual cryptocurrencies.
Firms across Asia are taking a stance against cryptocurrency ads as well. Line, the most popular messaging app and social media site in Japan, forbids crypto-related advertising to avoid any legal risk and to protect customers. Yahoo Japan is also reviewing its policy regarding crypto-related advertising.
China has already banned ICOs and cryptocurrency exchanges last year. Weibo, Baidu and Tencent restricted ads relating to cryptocurrency as well. Analysts expect Facebook, Google and other firms to loosen their ban sanctions once authorities release guidance on how virtual currencies will be managed.
Cryptocurrency supporters, however, claim that band won’t have a huge impact. In China, investing in cryptocurrency remains a popular venture. Investors have moved to other chat rooms and platforms that allow cryptocurrency advertising. Word of mouth also helps promote new coins.
The decentralized nature of cryptocurrencies means that it’s easy to access information about the digital currency and invest. A good example of this interest is Line’s application for a license in Japan to run its own cryptocurrency exchange.
Cryptocurrencies have become very popular over the past few years. Exchanging Bitcoin or other currencies doesn’t usually involve any transaction fee. Bitcoin’s database is managed by a global computer network known as Blockchain technology. There is no central authority involved. Cryptocurrency isn’t based on the exchange rate, interest rate or transaction charge, so it can be used worldwide without any problem.
Since Bitcoin contracts can exclude or include third parties, transactions can be completed quickly. Cryptocurrencies are also exchangeable, so it has become another way to build one’s portfolio. Investors can store cash in the form of cryptocurrency and exchange it for real money anytime. They can also purchase Bitcoins directly if they want to own real Bitcoins.
However, there is still the risk of fraud and deceitful activities involving cryptocurrencies. This is one of the reasons why social media networks like Google, Facebook and Twitter decided to ban all cryptocurrency-related ads. With this move, social media networks and online companies hope to protect the community and their reputation as well.