Even Google is not safe from the digital currency winter. In a meeting held to review Google’s financial income in the third financial quarter of the year, Philip Schindler, one of the company’s senior business managers, said that the reason for the decrease in Google’s profit is that companies active in the field of digital currency spend less on advertising. .
In the third fiscal quarter of the year, we saw a decrease in advertising spending in some areas. For example, in financial services, we saw a decrease in advertising in insurance, loans, mortgages and digital currency sub-sectors.
The growth of Google’s income from advertising was about 6% in the mentioned period. If we leave aside the decrease in profit at the beginning of the quarter due to the corona epidemic, this figure was the lowest growth rate since 2013 for this company. YouTube’s revenue from advertising has also decreased compared to last year.
Sundar Pichai, CEO of Google, has stated that climate change has had a massive impact on Google’s advertising revenue. Schindler also mentioned Google’s regression twice in his speech, but did not provide specific details in this regard.
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It is no secret that the situation of digital currency in 2022 has no definition. Investors have sold their digital currencies and the markets that were created due to the growth of these currencies have collapsed. Bitcoin and Ethereum alone have lost about 60% of their value this year.
The Coinbase exchange, which was unveiled in 2021, has seen a seventy percent drop in investments. In the meantime, the bankruptcies of activists in this field have not been few. Celsius Network and Three Arrows Capital are among the big names that have declared bankruptcy during this period.
A number of other companies also continue to operate, but due to layoffs. Blockchain.com laid off about 25% of its workforce in July, and Coinbase did the same with 18% of its workforce last month. Things may be a little worse for Crytpo.com, as the exchange has made layoffs twice.
Google hopes that this situation will not continue and therefore envisions a bright future for itself in this field. At the beginning of this year, the company announced that it will cooperate with Coinbase for the trading of its users in the space of cloud services, and this work will be implemented from next year. In addition, Coinbase will transfer its data in the field of digital currency to Google’s cloud infrastructure and stop cooperating with Amazon Web Services, which it has cooperated with for years.