Why Bitcoin dropped below $8000 today

Financial markets can be very emotional and today a powerful and large company made an announcement that scared a lot of people. However this news may actually be better for the crypto-world in the long run, especially if you understand the philosophy behind cryptocurrency in the first place.

What happened?

Google announced that they will banning cryptocurrency adverts, including adverts that promote exchanges, Initial Coin Offerings (ICO’s) and wallets, the ban will begin in June.

This may sound alarming but there is reasonable motive behind this.

Facebook was the first to ban cryptocurrency related adverts in January after they found out that a lot of those adverts were being used to potentially scam would be investors.

I have personally advised people to stay away from ICO’s that are being advised on social media for the very same reason.

I remember seeing ICO adverts stating, “Did you miss Bitcoin? This new crypto will replace it”, “guaranteed 50x returns” and other ludicrous claims by advertisers looking to rope in investors who do not know any better.

Please note that ICO’s in general are not bad and I am not against them, I just advise that you only invest in projects that actually aim to solve a problem.

What does this ban cover?

Google’s ban does not only apply to cryptocurrency, it applies to unregulated or speculative financial products that include:

• Binary options
• Cryptocurrency
• Foreign exchange markets
• Contracts for Difference (CFDs)

Google will also begin blocking some gambling adverts related to virtual items which can be traded for real world money (skins gambling for example).

Google’s new policies were put in place to “tackle emerging threats” which include scammers trying to take advantage of high consumer interest in speculative assets.

You can find out additional information on their advertising policies page: Financial Services: New restricted financial products policy (June 2018)

Why this could be good for cryptocurrency

The best cryptocurencies and blockchain projects are the ones that seek to solve a real problem, not the ones that only want to try and make money.

This is why I advise people to stay away from any projects that heavily advertise themselves, especially on social media, the best projects are discovered because of their reputation, not because of their advertising budget.

The more cash grab projects we can eliminate, the better it will be for the cryptocurrency eco-system, people may get scared and sell off their coins when they hear any “negative” news but the investors who hold onto good projects are the ones who will succeed in the end.

I hope you found this post helpful, feel free to check out these useful resources below:

You can keep your cryptocurrencies safe and secure with a Ledger Nano S hardware wallet.

You can buy Bitcoin, Ethereum, Ripple, Bitcoin Cash, Bitcoin Gold and Stellar Lumens from anywhere in the world using CEX

You can buy Bitcoin, Ethereum, Cardano, Qtum or Litecoin from anywhere in the world using Coinmama

You can also keep up with me on Twitter.