Bitcoin takes nosedive after Facebook and Google Policy

BITCOIN prices took a sensation following the shudder news of Facebook and Google will ban all cryptocurrency and initial coin offering (ICO) ads on its platform.

BTC opened on Thursday at $8,196.90, down on its Wednesday opening price of $9,144.15. Analysts have speculated bitcoin took a hit yesterday following the fear of Google’s new advertising policies would adversely impact the cryptocurrency.

As of 7.19am GMT today, BTC is exchanging hands for $7,911.99), down 3.48 percent, according to CoinDesk.

On Wednesday, Google announced several changes to its “advertising bionetwork” after Facebook, chief among them updated policies on cryptocurrency in earlier January.

The policy stated,

Ads for the following will no longer be allowed to serve:

· Binary options and synonymous products

· Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets and cryptocurrency trading advice)

Previously in January, Facebook, stated that misleading ads have no place, and it’s an effort by the company to prevent people from advertising “financial products and services frequently associated with misleading or deceptive promotional practices in the name of cryptocurrencies, including Bitcoin and ICOs”.

The US Securities and Exchange Commission similarly cracked down on crypto exchanges and ICOs this month, saying companies trading in digital assets need to follow federal laws.

Earlier this week the Mt Gox Founder, the world’s largest bitcoin trading exchange, also sold again most of his holding in Bitcoin and Bitcoin Cash resulting in extra supply of the bitcoin markets which made Bitcoin correct about 5-7%.

These last few days have been a little bad for the Crypto Markets but it’s nothing new said Sidharth Sogani from Block Next Solutions LLP, the expansion of large Bitcoin companies and digital currency exchanges suffering losses from cyber-attacks and these are the possible risk that has proven to have a strong impact on the price of bitcoin in the past as well. The hack of Mt. Gox in 2014 and the Bitfinex hack in August 2016 have both pushed down the price of the digital currency earlier as well. But, research has shown that since the inception of Bitcoin in 2009, about one-third of bitcoin exchanges have been hacked. Despite efforts to improve cyber security at exchanges and Bitcoin startups, the risk of large-scale hacks is real and one that will most likely occur again in the future. However, high profile hacks should only have short term effects on the price of bitcoin and should not really affect its long-term price development. When bitcoin is viewed from an investment perspective, it is more often compared to gold than it is to other currencies. That is because bitcoin and gold have a lot in common as assets. Both are limited in supply, have functional use, and are considered by many, despite their volatility, to be good stores of value, if chosen under the good market conditions and under the supervision of reliable Crypto-currency asset management organizations.

Heena Gupta
(Content writer, Blocknext Solutions)

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