Worth Buying Bitcoin: Bitcoin Price is getting crashed every day since the beginning of 2018. Some people claim it will never reach its all-time high price again. The other HODL gang claims it will soon reach new all-time high price in a few months. Crypto day traders and swing traders believe the market will be back during the FIFA World Cup 2018. Is it still worth buying bitcoin? Because Facebook recently banned advertising crypto ads and Google announced they will soon ban ads related to Bitcoin and Cryptocurrency.
Still many Governments remain silent about Bitcoin and Cryptocurrency whereas Companies in Germany and Japan already started paying salary to their employee via Bitcoin. On the other end, a country implemented blockchain technology for their recent election. So what will be the future of Bitcoin and Altcoins? Will Google and the Facebook ban will make the cryptocurrency assets to its end?
There are 4 things Google doesn’t allow to advertise on their platform:
- Counterfeit goods.
- Dangerous products or services, like recreational drugs, weapons, ammunition, explosives and fireworks, and tobacco products.
- Anything that enables dishonest behavior, such as hacking software, services to artificially inflate web or ad traffic, fake documents or academic cheating.
- Inappropriate content, like hate speech or ads that use profane language
But as of June this year, they will add one more – crypto.
The ban is actually quite broad: “Cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice).” Frankly, it is hard to blame Google, or Facebook (which put a similar ban into place recently), for the move given the level of fraud and deception in the space.
Bitcoin’s price has been hit on the news, and for good reason: its value correlates well with the growth in the number of wallets that store crypto online. Less advertising for bitcoin-related services may slow new wallet growth, which has already declined from its peak last year. A few numbers to consider:
- Bitcoin wallet growth in Q4 (the peak quarter for its price): an average of 7.7%/month
- January 2018 wallet growth: 3.5%
- February 2018 wallet growth: 2.9%
- March 2018 run rate: 2.5%
Bitcoin Search Trends in Google
Google search trends for “bitcoin” (a leading indicator for me when looking at wallet growth) – shows a similar decline in 2018. The logic here is that those interested in buying bitcoin start with a Google search, and then open a wallet and eventually purchase.
The latest data from Google Trends:
- Worldwide searches for “bitcoin” and “bitcoin news” are down 67% from the start of January to today.
- From the all-time peaks of online search interest last December, Google searches for “bitcoin” are down 90%.
- Changes in search interest for bitcoin in just the United States mirrors global volumes.
- Global search interest is now similar to early October 2017, when bitcoin’s price was around $4,400. Bitcoin’s current price is $8,100, or roughly double the prior levels.
The bottom line is that Bitcoin is no different from any other emerging technology: it requires incremental adoption from new users in order to grow in value. That’s why I focus so much on wallet growth. Those are the new users, and right now growth here is less than half of what it was when Bitcoin was rising at a furious pace.
To close out on a (strangely) positive note, consider again the list of things Google doesn’t allow to advertise. None are particularly appealing – drugs, tobacco, hacking software, counterfeit goods, etc. – but they are all multi-billion dollar industries. Google’s ban has done little to dent their ongoing success.
No doubt the ad ban will slow adoption, and the data I present here shows why that is important. But just because Google forbids advertising doesn’t condemn an industry to failure. People always find a way. Share this article with your friends if you love Crypto and Blockchain assets and want them to stay longer.