The average price of a Bitcoin has dropped approximately in half in very short order, representing prudent profit taking in the face of continued irrational exuberance displayed by cryptocurrency investors up to now. With a host of headwinds set to deflate the value of Cryptocurrencies such as Bitcoin over time, the recent announcement that Facebook Inc. (NASDAQ:FB) will be banning all speculative ads focused on binary options, initial coin offerings, and cryptocurrency has sent new shockwaves through the sector.
Investors in cryptocurrencies have, up until now, relied on word of mouth and social media marketing to spread the "get-rich-quick" upside of cryptocurrencies, with little in the way of disclaimers citing the risks of such investments. I have been bearish on the long-term investment case for Bitcoin as a replacement for government-regulated currency for a number of reasons, among them being the inability for governments to tax said investments and know where money is flowing and from whom.
This recent move by Facebook in banning ads of highly speculative and dangerous "investment" schemes should be applauded by regulators and should be an example for how technology companies ought to play a role in regulating what its consumer base sees. As Facebook increases in performance relative to other advertising-oriented technology businesses, I expect the company to enact similar regulations moving forward in a bid to protect its viewers from the next "get-rich-quick" scheme which pops up.
Invest wisely, my friends.
