Authority warns of Bitcoin’s “halving”

Interest in cryptocurrencies is steadily increasing in Sweden.
Not least for Bitcoin, which is facing a so-called “halving”, which drives demand.
– There is a lot of interest in what will happen to the price after that, says Emelie Moritz, CEO of the crypto brokerage company Safello.

Over half a million Swedes own some form of digital currency, according to new figures from the audit firm EY. The interest in Bitcoin is especially great now that it is facing a so-called “halving”. This simply means that the rate at which new Bitcoin is created will be halved, which can drive demand.

The expected halving will most likely take place on Saturday and is causing quite a stir. And for the first time before a halving, Bitcoin has also reached a new “all time high”, says Emelie Moritz, CEO of the crypto brokerage company Safello.

– Above all, it causes a stir because we have seen such an incredible interest in Bitcoin and cryptocurrencies from financial institutions around the world, says Emelie Moritz.

At the same time, it is difficult to say exactly what will happen to the price, because you can only look at historical data, she says.

The authority warns

The Financial Supervisory Authority warns against investing in cryptocurrencies, partly because it is a complex product that many consumers do not understand and partly because the price can vary greatly.

– Our basic tip is that you should never invest in something you don’t understand, says Moa Langemark who is a consumer protection economist at the Swedish Financial Supervisory Authority.

It can involve very strong fluctuations and you should bear in mind that many who invest in crypto assets do so to speculate on it. You buy and sell when you think it’s time and then you risk losing a lot of money.

The Financial Supervisory Authority has also, together with the police, informed that there are many criminals who use crypto-assets. Likewise, we have been out and talked to authorities about the large energy consumption that Bitcoin takes when “mining” Bitcoins.

Many who invest

Despite the risks, over half a million Swedes have invested in various types of cryptocurrencies. The fact that there are still so many, Moa Langemark believes, can be due to several things.

One theory, she believes, could be that many young people turn to social media to get inspiration and tips about saving and investing, and there is a lot of talk about crypto-assets. She also believes that many people feel that there is generally a lot of talk about cryptocurrencies right now.

– There is a bit of a FoMo feeling about it, you are afraid of missing the train, believes Moa.

Ultimately, it could also be that many people are having a tough time financially right now.

– If you see something that can potentially boost your savings to new levels, I think that many people can be attracted to it, says Moa Langemark.

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