March 29, 2024

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 attracted attentionall media, the same thing happened during the pandemic in 2020. Cryptocurrencies as such now do not need additional promotion, while their acceptance or non-acceptance by companies and states becomes, in a sense, a kind of PR campaign and a tool for identifying with advanced trends in the global economy. 

Limited influence

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

In addition, in our opinion, this eventwill have virtually no effect on the recognition and popularization of cryptocurrency in the world, the share of advertising of digital assets on Google will most likely be extremely low in relation to other products. At the same time, it must be taken into account that one of the most popular sectors in the crypto community, DeFi, is prohibited in Google advertising even in the updated version of the policy. This indicates the IT giant's focus on already established projects that do not need  additional advertising. 

Moreover, Google's updated policy alsoprohibits crypto advertising from linking to sites that contain trading signals or investment advice in digital assets. In this case, advertisers must be registered with FinCEN and have a certain status. Thus, significant restrictions will only affect companies that are not ready to work according to transparent rules 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 Google's initiative looks quite dim, 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. 

However, the positive mention of cryptocurrencies evenSuch a minor issue 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 level, while ETH/USD remained near the $3,000 level. Growth triggers for the main digital assets were the update of the Ethereum network and the improvement of the information background regarding cryptocurrency market.