Bitcoin traders woke up to some bad news Monday morning, as the price of the coin dropped by nearly 4%. The move brought the price down below the previously held support at $8,500 and left many wondering what caused the struggle.
Some have suggested that the news of Google’s new checking account, Cache, could be a potential culprit. Called a ‘Bitcoin killer’ by some, the tech giant’s new offer would allow users to have GooglePay dedicated Citigroup checking accounts.
After Google's announcement that it plans to launch its own checking accounts, perhaps the search giant will kill bitcoin, after all: https://t.co/uZpPlgaebR by @BillyBambrough pic.twitter.com/hoAPfwRnEd
— Forbes Crypto (@ForbesCrypto) November 18, 2019
Deeply in the Market
This news signals the divergent financial strategy between Bitcoin enthusiasts and more traditional financial companies. Bitcoin is designed to be a decentralized payment system, loosening the strings of dependence on traditional currencies. Google’s offering, on the other hand, is profoundly rooted in the traditional financial system, but with tech add-ons.
According to an interview with Google executive Caesar Sengupta:
“Our approach is going to be to partner deeply with banks and the financial system. It may be the slightly longer path, but it’s more sustainable. If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us.”
One of Many
The newest Google offering is just one of many, as Apple’s Goldman Sachs credit card, and Amazon’s announcement of personal accounts have come online. Others are also moving into the digital account space, as bankers and tech giants continue to team up.
However, the move may not actually change much for Bitcoin. With so many offerings already available, and the obvious issues facing any cryptocurrency (seen by the government response to Facebook’s Libra), things may be less painful than it would appear.