September 19, 2021

Google initiative softened the information background to cryptocurrencies

Google initiative softened the information background to cryptocurrencies

Yuri Mazur, Head of Data Analysis Department, CEX.IO Broker:

In 2017, the growth of BTC riveted attentionof all media, the same thing happened during the pandemic in 2020. Cryptocurrencies as such now do not need additional promotion, while their acceptance or rejection by companies and states is becoming, in a sense, a semblance of a pr-action and a tool for identifying with the latest trends in the global economy.

Limited influence

The launch of cryptocurrency advertising on Google is not a special and important event for markets.Although it has been banned by Google since 2018, this event has not been reflected in the digital asset market. The return to the advertising policies of the cryptocurrency search engine will most likely also go unnoticed for both investors and marketplaces. This is primarily due to the fact that for the recognition of Bitcoin, Ethereum, and indeed crypto projects in general, there is no need for a wide advertising campaign in search engines.

In addition, in our opinion, this eventwill practically not affect the recognition and popularization of cryptocurrency in the world, the share of advertising for digital assets in Google is likely to be extremely low in relation to other products. At the same time, it should be borne in mind that one of the most popular in the crypto community, the DeFi sector in Google ads is banned even in the updated version of the policy. This speaks of the IT giant's focus on established projects that do not need additional advertising.

Moreover, the updated Google policy alsoprohibits crypto ads from linking to sites that have trading signals or advice on investing in digital assets. In this case, advertisers must be registered with FinCEN and have a certain status. Thus, significant restrictions apply only to companies that are not ready to work according to transparent rules that are understandable to the global economy.

Paradigm shift indicator

But in the history with Google, there are certainpositive points. In a sense, the return of cryptocurrency ads to the search engine is a symbol of building confidence in the crypto industry. It is quite possible that this is due to the tightening of regulation in the United States, the gradual bringing the industry to uniform standards and rules throughout the country. This is by no means a step towards digital asset adoption at Google, but rather a recognition that the industry is heading in the right direction.

Compared to the actions of PayPal, Microstrategy,Tesla and SpaceX's Google initiative looks rather dull, so the impact on cryptocurrency quotes turned out to be very insignificant. If Google announces investments in bitcoin or the ability to pay for services using cryptocurrencies, such an event will have a strong long-term effect. But this did not happen.

Однако, позитивное упоминание криптовалют даже по such an insignificant occasion was further softened by the information background, which was extremely aggressive from May to July. According to the CEX.IO exchange, at the time of publication, the BTC / USD pair was trading near the $ 45,000 mark, while ETH / USD was held near the $ 3,000 level. market.