Centralized Systems Banning Cryptocurrency Ads Might Be A Good Thing
Early this year, Facebook declared that it is going to stop all cryptocurrency related advertisements. Other platforms followed. In March, Google promised to increase surveillance for crypto-related ads. It seems the trend will continue. Companies like Twitter have declared similar intentions. It might feel like a setback. However, at BitClave, we think it’s a good thing for the long-term health of the industry.
The cryptocurrency industry needs some introspection. There are bad actors and lazy investors out there. Some investors are taken in by these insincere. A small minority can change policies and make it harder for everyone.
The advertisement ban means the general population, who aren’t well-educated on the ins and outs of cryptocurrency and blockchain, will have a level of protection. Also, promising startups with genuine business ideas have an opportunity to use their skills and knowledge to reach part of this untapped audience. Without protections, this audience would have wasted their resources on unscrupulous ideas.
Ugly Truth of the Ban
If you have a great business idea and you have been working hard to prepare your ICO, the bans across the centralized social media spectrum are troubling. It makes your life harder as an entrepreneur. Instead of reaching thousands of people, you are restricted to a smaller part of the potential investors.
No doubt the bans will have a negative effect on the cryptocurrency industry. A lot of entrepreneurs will give up pursuing their worthy ideas. Even with access to social media platforms, it was difficult to raise money. The bans will further shrivel up the investment stream. So businesses need to find creative ways to reach the audience. It’s necessary to find alternatives to both build your reputation and reach people without the control of central authorities.
A really bad part of the social media bans is that there is no differentiation between legitimate businesses and scams. These platforms are banning the overall idea of cryptocurrencies. They don’t have the tools and equipment to discern between good actors and bad actors.
So far, social media depends on a central authority to determine the validity of an idea. The platforms business model is based on centralization. And you can’t blame them for taking up the banning of content. They are liable for the control of the data. Facebook is rightfully in hot water for the Cambridge Analytica scandal. If they are profiting from centrally controlled data, they should be held liable for its use. It doesn’t mean the scammers are any less responsible. They should be held accountable for the crimes they committed. But the centralized platforms are injecting themselves in the middle of transactions. So they are complicit in the actions of the scammers.
Decentralized Search and Platforms Promote More Responsible Business Models
There is no single solution to stop scammers. But a decentralized platform can help promote responsible businesses and consumers to connect with each other. A big problem with centralized platforms like Facebook, Google and others is that consumers let these platforms become the moderators. Considering the amount of information flowing, it’s not possible for these platforms to make informed decisions. It’s ironic that too much information is actually ending up choking the systems.
A decentralized platform will keep both businesses and consumers more alert. Today there is no way for a consumer to check the validity of a social media or search engine advertiser’s reputation. Scammers can put sugar water in a bottle and claim it to be an anti-aging drink. The central authorities can’t check every bottled product. So if things get bad, they will have to just ban all bottled drinks.
At BitClave, we have been aware of the problem with centralized search and social media enclaves even before the scamming and ad ban started. That’s why we are building a solution that can help legitimate businesses and potential consumers build a relationship of trust. In our system, consumers share their data at their own will. In a centralized system, a consumer who has no interested in an ICO might still get bombarded with ads. In our system, both parties in a transaction have total control of their data. Our search system is built to help businesses and customers build a long-term relationship through mutual sharing of data and benefits.
In centralized systems, the middlemen have a huge stake in the flow of information.
Whether it is the mainstream media or the newly created social media giants, they need to stop misinformation to keep the system clean. They don’t have the luxury of giving this power to the consumer because it entails giving up control of the lucrative profits. In a BitClave environment, businesses provide their information to the customer directly and pay the consumers to share. The customer has a stake in sharing information. So customers share their data with businesses they are genuinely interested in.
Centralized social media platforms are making money from advertisers flooding their systems. More ads mean more profits. Businesses have to spend enormous amounts of money, yet they don’t have control over the data. On the other hand, customers don’t have control over what ads they get bombarded with and what personal data is shared. It creates a system of mistrust and misinformation for both companies and users.
What is the silver lining of the ad apocalypse? Both good startups and informed ICO investors will seek out a more trusted network to build business relationships. BitClave has committed this ethos. We are building a blockchain-based search engine that will help businesses and customers work with each other without the middlemen. Find out more about us today. Help us build the future.
