I'm feeling really confused right now and a little scared because more than half of the ads im seeing on youtube are for ad blockers.

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That's very interesting. Would YouTube be trying to enter the adblock business? If you can't stop them, join them type of approach? Take one adblock being promoted, go on their site and try and see who owns/operates it. That can also usually be seen in the user agreement as you surely know.

I almost certainly think this is the case but Im definitely not going to click on these ads.

These reptiles are coming for our brainstems.