Norwegian Billionaire Invests in Bitcoin Nine Days After Cryptocurrencies Criticism

Nine days ago, billionaire and investor Oystein Stray Spetalen at the DNB Invest conference called Bitcoin «a meaningless currency.» However, this version was not relevant for long. According to the Norwegian edition Finansavisen, now he not only bought himself BTC, but also invested in the largest cryptocurrency exchange in Norway, MiraiEx.

As a result, Spetalen’s point of view has completely changed against the background of high activity of buyers on the crypto market after the recent correction of Bitcoin.

Initially, one of the main arguments of criticism of the billionaire was the harm to the environment from Bitcoin mining. Here is his remark, in which he substantiated the shortcomings of the first cryptocurrency. The statement is quoted by Decrypt.

Bitcoin today consumes as much energy as the whole of Norway. This is extremely harmful to the environment. The authorities and the EU should immediately ban cryptocurrency. Then it will be possible to significantly reduce CO2 emissions. This is just nonsense. We are doing well with the existing payment systems.

That is, according to the billionaire, serious electricity costs are supposedly enough to ban Bitcoin. And from this statement, we can conclude that the entrepreneur is not familiar with the principles of decentralized networks. Recall, in fact, in order to close the Bitcoin network, the authorities – or other interested party – need to bypass all owners of BTC nodes around the world who confirm transactions and ensure the relevance of data in the blockchain, and physically destroy these devices or disconnect them from the Internet. Naturally, this is impossible to do.

We checked the actual data: the Bitcoin network does consume a lot of electricity. In particular, the hash rate – that is, the sum of all computing devices in the BTC blockchain – updated its historical maximum the day before. This means that a record number of people are engaged in bitcoin mining.

bitcoin hashrate

Bitcoin network hashrate

Later, in an interview with Finansavisen, Spetalen admitted that he now partially owns the Norwegian cryptocurrency exchange MiraiEx. That is, the arguments of a week ago are no longer relevant.

When the market situation changes, so do I. I met with the founders of MiraiEx Took and Oyvind the day after recording another podcast in early March and realized that I was wrong. And when I also read that industrial tycoon and other Norwegian billionaire Kjell Inge Rökke became addicted to Bitcoin, it became obvious. I hate to see that Ryokke is making money, not me.

It seems to us that the rationale is rather weak, but it turned out to be sufficient. It is obvious that the investor really saw a way to earn money, so he invested money in a promising direction within his country. And old lines about excessive spending on Bitcoin mining have become part of history.

As a reminder, at the beginning of March, at the suggestion of Rökke, the Seetee AS division was created in the Norwegian company Aker ASA. The first decision in the new strategy for the division was the purchase of 1,170 BTC for approximately $ 58.5 million. In an interview with Finansavisen, Spetalen noted that he also bought bitcoins, but in smaller quantities than Rökke.

Aside from a couple of new billionaires, long-term coin holders hold faith in BTC’s potential. According to the research platform Glassnode, the number of «old» bitcoins – those that have not moved in more than two years – in circulation reached a three-month low at 45.364 percent of all mined coins. This trend indicates that holders who bought BTC around the peak of the last bull cycle in 2017 and earlier are showing deeper confidence in the coin’s rally, as Bitcoin is now consolidating above $ 55k and even hitting $ 57k .

bitcoin blockchain cryptocurrency chart

The fall in the number of active «old» bitcoins

In any case, the crypto market has not yet reached its global maximum. The activity of long-term holders of cryptocurrencies is a fairly reliable indicator, since it was by it that it was possible to determine a trend change during previous bullish cycles.

The fact that the price of BTC has tripled since the high point of the last race does not mean anything: Bitcoin has room to grow. This statement is especially relevant given the fact that Tesla has begun to accept the cryptocurrency, and other giants will follow. Accordingly, the demand for BTC will grow and its reputation will improve.

We believe that initially Spetalen was quick to criticize Bitcoin – especially given his weak arguments. In general, statements against cryptocurrencies are not particularly relevant now. At the moment, it becomes obvious that the development potential of blockchain assets has already been considered by the world’s top companies, and there will be support for the crypt from their side. Well, then, according to tradition, people who have not yet had time to appreciate the benefits of decentralization will catch up. So the situation will change for the better soon enough.

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