Bitcoin Price Climbs Amid Twitter Cryptocurrency Ban Rumors

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Bitcoin Price Climbs Amid Twitter Cryptocurrency Ban Rumors

Bitcoin prices rebounded on Monday after falling close to $7,000 yesterday on fears of a Twitter ban on cryptocurrency advertising.

As of this writing, the price of one bitcoin token (BTC) was $8,417, up 2.7% from the previous day. According to CoinDesk, Bitcoin’s price fell below $7,336 on Sunday before showing a faint return.

Unsurprisingly, the BTCrally drove a comparable increase in all ten of the most valuable cryptocurrencies by market cap.

Ripple rose more than 4% in the last 24 hours, while Tron and Ethereum Class both gained 10%. Eos increased by 20%, but Qtum increased by more than 37%.

The momentary bounce came as a welcome comfort after the whole digital currency market crashed last week when search engine giant Google declared it will block crypto adverts beginning in June.

Google’s director of sustainable advertisements, Scott Spencer, said that the company acted immediately to safeguard customers from possible fraud. (See also: Coinbase Sued for Bitcoin Cash Insider Trading.)

“We don’t have a crystal ball to predict where the future of cryptocurrencies will go, but we’ve seen enough customer injury or potential consumer harm that it’s an area we want to handle with great care,” he said. (See also: Bitcoin Price Swings Remind Morgan Stanley of the Dotcom Crash.)

Rumors of Twitter CryptoBan Roils Market

The Google prohibition follows a similar action by social media behemoth Facebook, which prohibited cryptocurrency advertisements in January 2018. Rob Leathern, Facebook’s product management director, detailed the change in a blog post:

“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception. That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”

Twitter is said to be considering a similar restriction. According to Sky News, the microblogging platform is thinking of prohibiting cryptocurrency adverts as well as ads for cryptocurrency exchanges.

  Crypto Collapse

The new advertising policy “will be applied in two weeks and presently stands to restrict marketing for initial coin offerings (ICOs), token sales, and cryptocurrency wallets internationally,” according to the news portal.

Twitter has not verified the reports, but a ban would not be unusual given that Twitter has already terminated the accounts of internet fraudsters who pretended to be celebrities in order to steal people’s cryptocurrency.

Elon Musk, the millionaire inventor of Tesla, stated he was a victim of impersonation and reported it to Twitter co-founder Jack Dorsey. (For more, see Elon Musk’s Bitcoin Holdings.)

According to observers, the bans imposed by Google, Facebook, and maybe Twitter will have a chilling impact on the industry. “Because most of crypto demand is retail, this may have a negative effect,” Joe DiPasquale, CEO of BitBull Capital, told CNBC.

The high expense of bitcoin mining, according to DiPasquale, has also placed pressure on its price. Mining one BTC token currently costs about $8,000, which is nearly similar to its market price, so miners are practically breaking even. (Read more: Bitcoin Miners Are No Longer Profitable.)

“Miners have less motivation to keep machinery running unless they are in a lower-cost energy location or have a technique of producing at less than cost,” DiPasquale added.

Twitter Billionaire Jack Dorsey Backs Blockchain

However, billionaire Jack Dorsey seems to be positive about bitcoin, as indicated by his financial sponsorship of blockchain company Lightning Labs.

Lightning Labs, situated in Silicon Valley, has secured $2.5 million in early capital from technology luminaries such as:

  • Litecoin creator Charlie Lee
  • Jack Dorsey, co-founder of Twitter and Square Inc.
  • Former PayPal COO David Sacks
  • BitGo CTO Ben Davenport
  • Kevin Hartz, co-founder of Eventbrite
  • Firm specializing on venture funding Group for Digital Currency
  • Vlad Tenev, co-founder of Robinhood.
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Granted, $2.5 million isn’t a lot of money for a group with such big resources, but it’s still a vote of confidence in bitcoin and blockchain, the technology that underpins cryptocurrency, from some of the sharpest individuals in fintech. (Read more about billionaire Jack Dorsey’s investment in a blockchain startup.)

Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and neither Investopedia nor the author suggest that you do so. Because every person’s circumstance is different, a knowledgeable specialist should always be contacted before making any financial choices. Investopedia makes no guarantees or warranties about the accuracy or timeliness of the information provided on this site. The author owns no cryptocurrencies as of the day this post was published.

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