Jordan Belfort Predicts “Really Bad” End for Bitcoin
The man known as the "Wolf of Wall Street" has said once again that Bitcoin will collapse in value, saying it is highly prone to market manipulation.
Jordan Belfort, the former stockbroker known as the “Wolf of Wall Street,” sees Bitcoin’s future as bright in the short term, but does not believe the cryptocurrency stands a chance against market forces over the long term.
“What’s going to happen with Bitcoin is going to be a black swan event in the next six months, by the way just so you know, I’m not saying Bitcoin is going down, it might go to $50,000. I wouldn’t short Bitcoin for a second right now. I don’t know where it’s going over the short term, I know where it’s going over the long term. Nothing is guaranteed in life, I’ve never been surer of something that this ends really bad for people,” he said.
Belfort, a man with experience in manipulating stock markets, said the Bitcoin technology has a severe flaw that “opens itself up to be manipulated.”
He went on to elaborate that Bitcoin has no inherent value, relying only on its scarcity to command its current price.
This is in some way similar to blind pools, according to Belfort. These financial instruments were often based on trust from investors that the money they dipped into the pools would be put to good use.
During the 1980s and 1990s, blind pools acquired a toxic reputation due to the ease with which investors could be scammed.
Belfort believes that people are moving into “Bitcash” (presumably Bitcoin Cash) to participate in a pump-and-dump scheme.
This wouldn’t be the first time the Wolf of Wall Street has taken a stance on Bitcoin.
Late last month, he said the phenomenon was dangerous and “a bubble for sure.”
In an interview for The Street, he pulled no punches, calling the cryptocurrency a fraud.
In each of these statements, he used different reasoning for his assertions.
In the December presentation, he dubbed Bitcoin dangerous because it is both unregulated and seen as a “get rich quick” scheme.
In his interview, he cited the cryptocurrency’s volatility as the reason he thought it was a fraud.