Jordan Belfort, the “Wolf of Wall Street”, calls Bitcoin a “wolf in sheep’s clothing,” and warns of potential for scams and market manipulation. He also thinks the cryptocurrency could reach up to $50k per coin before crashing.
Jordan Belfort, known colloquially as the “Wolf of Wall Street”, has yet again cast doubt on Bitcoin, this time in a video interview with entrepreneur Patrick Bet-David, posted on Bet-David’s Facebook Jan. 31.
Belfort told Bet-David that he doesn’t believe Bitcoin (BTC) itself is a scam, referring to it as the creation of “financial anarchists”. He does think, however, that the way the cryptocurrency was built is a “perfect storm for manipulation”.
Belfort believes that the rising price of BTC can be attributed to wild speculation because of what he sees as improper use of the cryptocurrency:
“Something [BTC] was designed to be used as a currency, and it’s being used as an investment vehicle […] As a currency, Bitcoin is no more useful at $20,000 or $100.”
Belfort spoke negatively about the potential for manipulating crypto markets due to the thinness of the market, specifically referencing the case of Olaf Carlson-Wee, an early adopter of BTC who was paid in crypto when working at Coinbase in 2013.
According to Belfort, Carlson-Wee sold all of his Bitcoin, bought Bitcoin Cash (BCH) and then gave a televised interview saying that BTC was dead and that Bitcoin Cash was the future, causing its price to skyrocket.
CT could not confirm that Carlson-Wee ever mentioned dumping all of his BTC for BCH, although he did give an interview to CNBC about Ethereum that some Reddit users misconstrued as Carlson-Wee moving all his holdings to Ether.
Belfort predicts that while Bitcoin is, in his words, a “wolf in sheep’s clothing,” it also “might go to $50,000” before what he is certain will be its eventual fall to zero.
Belfort told Bet-David he had invested “not a penny” in cryptocurrency.