Jordan Belfort, aka, the “Wolf of Wall Street” believes that Bitcoin, the top-ranked cryptocurrency is going to evaporate, reports Ethereum World News.
Speaking to CNBC as part of a documentary titled “Bitcoin: Boom or Bust,” Belfort said that BTC investors were heading for a sad end. According to Belfort, BTC is a great scam that would render many people penniless after the bubble bursts.
During the interview, the Wolf of Wall Street also said:
I was a scammer. I had it down to science, and it’s exactly what’s happening with bitcoin. The whole thing is so stupid, these kids have gotten themselves so brainwashed...
This thing [Bitcoin] is going to evaporate like a mirage. There’s a lot of really honest people who are going to get slaughtered.-RW
Bitcoin is currently the most common currency for purchasing and selling most of the other cryptos. There are many exchanges where dollars are not used at all, you must bring bitcoin or another crypto, though everything can be traded with bitcoin. Perhaps another cryptocurrency will take bitcoin's place in this regard, but who knows?
ReplyDeleteThe charts shows lower highs and lower lows since February, but bitcoin does not seem to be headed to zero like a pump and dump stock. Bitcoin could lose 30%/year for 25 years before going under $1. Yes, those who plunged will be wiped out, but it wouldn't "evaporate".
Isn't this guy famous for stealing from people? Sorry selling people garbage investments?
ReplyDeleteWenzel commented on my comment above at his post titled 'A Comment on Pump and Dump and Bitcoin' but comments are not enabled on that page, so I'm posting here.
ReplyDeleteWenzel writes "The fact of the matter is that Bitcoin is probably in worse shape than your average pump and dump stock scam. Pump and dump scam stocks often don't evaporate, they are reused."
I don't doubt that the claim about reuse is true. Any asset could participate in any number of bubbles. Bitcoin itself has had several bubbles already. Or, as the believers would say, "ups and downs on the road to the sky". I've made significant money on two of them, but didn't get in on that last one to $20,000 early enough last time and sat it out. It had just peaked at around $3,500 a few months earlier! I sold for an average of $2,400, mostly on the way up, but some on the way down.
Because there are pump and dump schemers out there, we will almost certainly see more Bitcoin bubbles. But how to get in to the next one near the bottom? Do what Wenzel advises: keep buying on the way down as long the fundamental reason for owning remains in force while keeping risk within strict limits, typically as a percentage of portfolio. And be patient. The next Bitcoin bubble could be years off. I'm not accumulating yet, though, a new crop of believers has to be created.
Wenzel also says he is trying to understand the utility of the activity of using Bitcoin to buy other cryptos, implying that they are all nefarious cryptocurrencies that are probably also pump and dump. The use of bitcoin to buy and sell other cryptos is common because there are two types of exchanges: those that accept dollars, are highly regulated, and have a narrow range of cryptos to offer, and those that do not accept dollars, are much more lightly regulated, and so can list any crypto they want to. You buy Bitcoin on the first kind of exchange, transfer it to the second, then buy what you want to hold, moving that to an offline wallet so it can't get stolen.
But his main point here is not a technical one; he's asking why would want to acquire any of those other cryptos in the first place? He essentially predicts endless pump and dump, scammy ICO's, and the like with no good to come of it.
Here's where I don't understand Wenzel 1) making economic predictions, something the Austrians are not big on, and 2) going so far outside his realm of expertise, not that he couldn't change that by talking to one of the crypto experts at, say, Casey Research or Agora or Stansberry Churchouse.
Many cryptos are not currencies, cryptocurrencies are a subset of the field. Those cryptos focused on solving real problems, and there are many to be solved, are where the long run value is, if there is any.
Wenzel's position is like that of someone watching a snake oil salesman at a carnival 150 years ago and declaring that no good will ever come of selling potions in bottles, they are all a scam and a ripoff and always will be.
Let me be the first to admit that many cryptos are a scam and a ripoff, but also to point out how many useful potions are now sold in bottles (and pills). Real value was eventually created in that arena, it could happen in cryptos as well. Look for value creation, Wenzel, attempts to create value are out there.