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Finance expert and millionaire Jordan Belfort advises investors to steer clear of Bitcoin. He joins other industry leaders in challenging the legitimacy of Bitcoin and other cryptocurrencies, stating that the unregulated and private nature plus lack of security surrounding it will almost certainly lead to financial trouble for investors.
What’s so attractive about Bitcoin?
Bitcoin is a peer-to-peer digital currency that is created using complex computer codes. As an online transactional medium, it doesn’t require a third party like a bank. A digital ledger in the form of a blockchain records all transactions and it is publicly available.
Users claim the advantages of Bitcoin include its security, low to no fees, no sales tax on transactions, and that it is a global alternative to fiat currency. Investors see the enormous gains in value and see it as a way to make a lot of money quickly.
“Wolf of Wall Street” recognizes red flags in Bitcoin
Belfort is a former stockbroker who pleaded guilty to fraud in the 1990s and served time in federal prison. His memoirs inspired the Martin-Scorsese film, “Wolf of Wall Street.” As a convicted scam artist and fraudster, Belfort claims to recognize many of the same characteristics in Bitcoin as his successful finance schemes.
Investors can trade fiat money for Bitcoin and hold onto it in a digital wallet, hoping the value rises. Over the past few years, Bitcoin has been extremely volatile, gaining and losing thousands of dollars in as little as a day. However, Belfort warns that its only a matter of time before investors in Bitcoin will be left with nothing.
Belfort predicts Bitcoin bust happens soon
Even though many people are dumping their money into Bitcoin, Belfort and other financial experts believe that the cryptocurrency will be short-lived. Besides its volatility, Belfort cites Bitcoin’s anonymity and security as reasons it is an investment gamble sure to fail.
As a speculative asset, Bitcoin certainly may be doomed to fail because it is facing some intense government efforts to regulate it, lack of leadership, difficulty in creating new digital coins, and its lack of use in the real world for transactions. Belfort predicts its demise in the next few years.