The cryptocurrency Bitcoin has fallen sharply in recent days. On Thursday, it was at its lowest level in a year and a half. So far this year, the value of bitcoin has almost halved. Cryptocurrency Photo: Graphics: Tom Bob Peru Aronsen / news Cryptocurrency is only available on computer servers You can buy the currency on the internet and then you get the value in the form of a code The use of the currency goes directly from person to person, without intermediaries such as a bank The first and most well-known cryptocurrency is Bitcoin. Through computer networks, payments are made with cryptocurrencies. The currency uses cryptography – among other things to transfer secure money transfers. are extremely complicated With an ordinary home PC, it would take millions of years to extract a single bitcoin Economists predicted that Bitcoin extraction would make up half a percent of the total energy consumption in the world in 2018 Currencies have no central bank behind them, and no has a monopoly on making new “coins” – It is actually quite clear what it comes from, says Torbjørn Bull Jenssen. He wrote a master’s thesis on Bitcoin back in 2014, is head of the crypto company Arcane Crypto and what one must be able to call an expert in the field. – There are two large, but really several, players that are about to go over. There is a cryptocurrency bank called Celsius and a huge fund called Three Arrows Capital. Jenssen explains that these players have had high borrowing. Then the price of various cryptocurrencies has fallen due to interest rate hikes, including in the US where they shocked with a tripling of interest rates. – It has triggered the first financial crisis in the crypto sector, says Jenssen. Jenssen is one of the largest experts on cryptocurrency in Norway. He says the bitcoin financial crisis is completely after the textbook for what a “normal” financial crisis looks like. Photo: Arcane Crypto / Arcane Crypto A game with money Professor Tor W. Andreassen at the Norwegian School of Management (NHH) describes bitcoin as a game with money. – Cryptocurrency is very complicated and speculative. I have tried to understand it, but have basically given up. I do not think it is sustainable in the broadest sense. Andreassen does not believe in crypto at all, nor does the giant Bitcoin. Photo: NHH Andreassen believes people need to be aware of how risky it is to invest in cryptocurrencies such as bitcoin. – You can wake up as a millionaire and go to bed as a poor lice. If you can afford to set fire to money, then feel free to do so and have fun with it. But here there is a significant risk, he says. – I would never invest in what Consumer Economist Silje Sandmæl in DNB is basically also skeptical of bitcoin as an investment. – I have always said that you should be aware of cryptocurrency. It is risky to go into something that is not tangible, she says. She thinks Bitcoin caught many in the beginning, because it was new and “everyone” talked about it. And some got extremely good returns. – Krypto sails its own sea. People have to make their own assessments, but I would stay away. I would never invest in it myself, says Sandmæl. Photo: Stig Fiksdal / DnB But according to Sandmæl, over the years it has become clear that the value of cryptocurrency fluctuates greatly. – If you want to invest money, you must know about the risk. And not at all push all their savings into it. Crypto is not a form of saving. – This is a useful reminder of the inherent uncertainty of how much cryptocurrency is worth. If you want to invest in it, you also have to deal with the very large fluctuations, says chief economist Kyrre Knudsen in Sparebank 1 SR-Bank. Kyrre Knudsener Chief Economist. Photo: Mathias Oppedal / news He believes that low interest rates and a lot of capital have led to people looking for new investment opportunities. Then more have landed on cryptocurrency. – But now interest rates are rising and there has been unrest in the markets. There is a built-in uncertainty associated with what the prices of Bitcoin should be, says Knudsen. Is a plummeting value a symptom of big problems, or a golden opportunity to invest? Photo: Josef Benoni Ness Tveit / news An opportunity But Jenssen does not share the traditional banks’ view of the opposition Bitcoin is now experiencing. He believes that this financial crisis will be deeply problematic for smaller and newer currencies, but that it will not matter to Bitcoin in the long run. – This means that the market fear you see now can be an interesting opportunity. – So it may well be that Bitcoin will fall further. But if you look further at this here, then there are no weaknesses in Bitcoin that have led to this fall. The fear you have in the market today will not linger in five years, says Jenssen. He warns investors to believe that they have hit rock bottom and to buy lots of cryptocurrency tonight. But still he says that one should start little by little now. – Personally, I have increased my purchase frequency, because I think this is a favorable purchase opportunity, says Jenssen.
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Bitcoin plunges and experts say the first crypto-financial crisis is here – news Rogaland – Local news, TV and radio
