Today I heard that google is also working to start its blockchain. That is a very good news for the blockchain users as it means that now everyone even most expert also think that blockchain is the future of this world success and they all are busy to develop their blockchain technology. It means that the world giants have believe on blockchain technology. With this progress it is sure that bitcoin will be considered as the best option for the future business and with this progress people will believe that bitcoin is the right option for the future global economy and business. This will increase the value of bitcoin to a highest stage.
Though what you said is true, lets face the fact that GOOGLE do this to improve their technology specially in monetary services and can make bitcoin less valued since there blockchain is more functional and the company is known for many years.
It won't hurt bitcoin in any way, it could benefit it as it shows acceptance and benefits of blockchain technology. Google are not using it for payments which is what bitcoin is designed for, it will most probably function without a cryptocurrency all together.