Notorious stockbroker and convicted fraudster, Jordan Belfort, has a warning for Bitcoin investors and claimed that his experience to cheat innocent people, gives him the ability to detect fraud. The so-called “Wolf of Wall Street” recently warned investors in an interview for a CNBC documentary.
Irony or Actual Concern For Investors?
“I was a cheater. I know the science, and it’s exactly what is happening with Bitcoin. The whole thing is so stupid, these children have undergone a brainwashing.”
Cats Throwing superficial assertion, Bitcoin is a fraud, and his obvious concern for potential victims sounds somewhat ironic when you consider that he has cheated unsuspecting investors with penny stocks in the past. He pleaded 1999 guilty after he and his former partner, Daniel Porush had admitted manipulating the stocks of at least 34 companies, what hundreds of millions of dollars cost investors. Cats Throwing history was in Martin Scorsese’s film “The Wolf of Wall Street”, in the Belfort was played by Leonardo DiCaprio, shows.
Belfort: Bitcoin and Crypto Will Disappear Probably in The Course Of The Year
Belfort predicts that the Cryptocurrency markets in the course of the year will simply disappear and will cost a substantial amount of money to investors.
“This thing will disappear like a mirage. There are lots of really honest people who will be slaughtered.”
To support this unprecedented claim, he turned to his own experience with market manipulation and explains that it is much easier to manipulate Bitcoin in comparison to shares. Belfort explains that he, as he manipulated stocks, had to employ a team of people to call perspective investors and to persuade them, to make the investment.
Now, people can manipulate the crypto markets using complex trading algorithms and massive purchase and sales orders at specific prices. In addition, there are also ICOs which can be treated as a source of fraud, because the vast majority of the ICOs in the very first month failed or simply disappeared.
It is important to make it clear that many Governments do not attempt to prohibit Bitcoin or other Cryptocurrency, with the exception of some countries that provide their citizens with severely restricted freedoms. Recently, the U.S. Treasury Department published its Fintech report in which there is a recommended regulatory environment for Cryptocurrency and Blockchain technology. The growing popularity suggests that countries such as the United States indeed will go over not to forbid Bitcoin or Cryptocurrency.
Despite its negative statements and exaggerated warnings, the history of Jordan Belfort is quite interesting and is worth a read.