We had a chat with the Scandinavian founders of websites such as norztrading.com, and the Norwegian CFD trading site CFDEksperten in order to get a short introduction into the world of cryptocurrencies and Bitcoin.
Håkon Fuglaas, Stefan Eriksen and Lennart F. Clausen are the 3 Norwegians behind the very successful CFD trading site CFDEksperten.
While Håkon Fuglaas is the founder of K2 Trading, Lennart F. Clausen and Stefan Eriksen have long been involved in the trading industry, – most recently trough their involvement in the Scandinavian fin-tech broker Skilling.
What are Cryptocurrencies?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units.
Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
Bitcoin, for example, can be used to purchase items on more than 50 000 sites globally.
Cryptocurrencies can unfortunately also be used to pay for goods and services on some darknet markets…
Since Bitcoin’s inception, thousands of other cryptocurrencies have been created.
Cryptocurrencies are often viewed as an alternative to traditional fiat currencies, such as the U.S. dollar.
Cryptocurrencies are also sometimes viewed as an investment, as their value can rise and fall.
The popularity of cryptocurrencies has surged in recent years.
The value of Bitcoin, for example, has ranged from a few hundred dollars to around $70,000.
Cryptocurrencies are also unfortunately sometimes subject to theft and fraud.
In December 2017, for example, a cryptocurrency exchange was hacked, and $530 million worth of Bitcoin and other cryptocurrencies were stolen.
In 2017, the total value of all cryptocurrencies combined was just over USD 17 billion. By late 2018, that number had skyrocketed to over USD 800 billion, and by the end of 2021 the total market capitalization of all cryptocurrencies combined to about USD 3000 billions…
Despite their growing popularity, cryptocurrencies are often associated with high risk.
Additionally, cryptocurrencies are not commonly regulated globally, and this is not always easy for investors to deal with.
The regulation of cryptocurrencies is still in its early stages and is evolving as we speak.
The SEC, for example, has not yet issued specific guidance on cryptocurrencies.
As a result, the regulation of cryptocurrencies varies from country to country and is often determined by how the particular cryptocurrency is used.
For example, Bitcoin is often viewed as a commodity and is regulated as such, while Ethereum, which can be used to create tokens, is often viewed as a security and is regulated as such.
The future regulation of cryptocurrencies is important as it helps protect investors and prevents fraud and theft.
It is also important to note that the regulation of cryptocurrencies is still evolving, and that the regulation of cryptocurrencies is most likely to change in the future.
Bitcoin for Dummies
Bitcoin, the largest and most known cryptocurrency is a digital asset and a payment system invented by Satoshi Nakamoto (Satoshi Nakamoto is the name used by the presumed pseudonymous person or persons who developed bitcoin).
Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are (to be) a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
Bitcoin has been a subject of scrutiny amid concerns that it can be used for illegal activities. In October 2013, the FBI seized roughly 26,000 bitcoins from website Silk Road during the arrest of alleged owner Ross William Ulbricht.
Resent Bitcoin Milestones
As early as November 2013, the University of Nicosia announced that it would be the first university in the world to accept bitcoin for tuition payments.
In September 2014, Microsoft began to accept bitcoin to buy Xbox games and Windows apps.
In early 2015, the Winklevoss twins announced plans to launch the Winklevoss Bitcoin Trust, an exchange-traded fund that would allow investors to buy and sell shares of bitcoin like they would stocks.
In May 2015, Grayscale Investments, a subsidiary of Digital Currency Group, announced the launch of the Bitcoin Investment Trust, a private investment vehicle that would allow investors to gain exposure to bitcoin without actually buying bitcoins.
In July 2015, the New York State Department of Financial Services proposed the first bitcoin regulation in the United States, which would require companies dealing in bitcoin to obtain a license from the department.
In May 2016, a federal judge ruled that bitcoin is a commodity, not a security, and that the CFTC has the authority to regulate its use.
In November 2016, the Bitcoin Gold project was announced. Bitcoin Gold is a hard fork of the bitcoin blockchain that will occur in October 2017. Its purpose is to restore mining to home users and to secure the network against ASICs.
In March 2017, the Cabinet of Japan recognized bitcoin as a legal payment method.
In June 2017, the Bitcoin Cash project was announced. Bitcoin Cash is a hard fork of the bitcoin blockchain that will occur in August 2017. Its purpose is to increase the block size to 8 megabytes.
In January 2018, the South Korean government announced that it would ban all cryptocurrency exchanges.
On October 19, 2021, the world’s first Bitcoin ETF was opened for trading on the New York Stock Exchange.
The ETF, which has been given the ticker BITO, will mirror developments in the Bitcoin exchange rate (BTCUSD) based on the future contracts traded on the Chicago Mercantile Exchange (CME).
The Bitcoin ETF that will mirror the price development in Bitcoin futures is the first Bitcoin future that the SEC (U.S. Securities and Exchange Commission has allowed for trading in this highly regulated market.
Bitcoin reaches an all-time-high of almost USD 70.000
Today (January 2022) we are still seeing an ever-growing interest for Bitcoin and cryptocurrencies in general.
While Bitcoin is currently trading at around USD 43 000, -it is just 2 months since we last saw a new all-time-high of around USD 70.000,
The 3 Scandinavian industry experts Lennart F. Clausen, Håkon Fuglaas and Stefan Eriksen are all confident that 2022 will be a most interesting year in terms of the development of Bitcoin prices and cryptocurrencies in general.