Google announced that it will ban advertisements for coin offerings, exchanges and other cryptocurrency services across its advertising platforms.
The policy change, which will become effective in June, sent cryptos lower as investors feared the new rules would slow growth of digital currency markets.
However, as with the ban of credit card purchases earlier this year, the Google announcement is not inherently a bad thing.
The statistics speak for themselves…
As I’ve said in the past, 98% of cryptocurrencies are outright scams. Sadly, many investors in these scams will lose 100% of their money.
So it should come as no surprise that Google and others are trying to distance themselves as much as possible from these currencies.
In fact, what’s truly surprising is the fact that Google was complicit with hosting advertisements for scams so brazenly to begin with…
Say Goodbye to Crypto Scams
As we’ve seen in the past year, gatekeepers like Facebook and Google are becoming increasingly important arbiters of information.
And while we frequently celebrate Google and Facebook for the innovation and opportunities they create, they have a dangerous amount of power.
These massive organisations have the unilateral ability to turn on (and off) the faucet of prosperity for whole industries.
In this case, though, I believe they are doing the right thing.
Google made it too easy for con men to set up scams and advertise their schemes to victims.
The cryptocurrency market benefited from new investors driving prices higher.
But the dust still hasn’t settled from the recent fallout. While people have been hurt by collapsing cryptocurrency prices, many of these scams have still not seen the bottom yet.
When that happens, many of these investors will jump into solid cryptocurrencies like Bitcoin and Ethereum.
And as the weaker investments shrivel and die, these stronger investments — and the market as a whole — will benefit.
At the same time, honest businesses will find innovative ways to market themselves without Google and Facebook, creating new opportunities we can’t yet imagine.
If you’ve been waiting to buy (or are looking to buy more), I’d buy a little now and wait a few weeks.
Remember: Never invest more than you can afford to lose.
Takeaway: Cryptocurrency markets sold-off as Google banned cryptocurrency related advertising.
The news sent cryptocurrency markets lower as investors feared the new rules would slow growth of digital currency markets.
However, long term, the news is a positive, it will reduce the opportunity for fraud — resulting in more credibility for the markets.
That brings me to a colleague of mine, Jim Rickards, who as financial advisor to the CIA, is naturally sceptical. He’s been no different with cryptos, identifying many, like I, as scams.
However, through his dedicated research and thorough background checks, he has identified a coin that has passed his stringent five-factor formula. He’s tipping this coin to go on to great things, expecting a potential 1000% gain over the next 12 months.