Jordan Belfort, popularly known as the real-life ”Wolf of Wall Street”, has previously proved that he is not afraid to make controversial statements. He’s at it again yesterday, stating in a new video that the current cryptocurrency market sentiment is “the beginning of the end” for Bitcoin.
More specifically, Belfort refers to a ”greater fools theory” in his video, this being an investment theory hypothesizing that the price of any security can be justified if a rational buyer is ”foolish” enough to believe that another party might pay a higher price for it, regardless of its intrinsic value.
Belfort also compared the current market sentiment in relation to Bitcoin prices to the Great Recession of 2008, where investors could not find willing buyers for defunct portage-backed securities – something he argued could now transpire with Bitcoin.
Put simply, Belfort argues that the current Bitcoin price is inflated due to ”foolish” market behavior. Belfort also urged investors to exit the cryptocurrency market, as investors could ”lose all their money” as the market runs out of ”fools” – which Belfort said is happening.
Belfort is not the first institutional investor to show reluctance to Bitcoin and the cryptocurrency sector as a whole. The epitome of Wall Street, legendary billionaire Warren Buffet, famously referred to Bitcoin as ”rat poison squared” earlier this year.
Nonetheless, Belfort stated that he was a believer in the underlying blockchain technology. However, whilst he acknowledged that there are indeed use-cases for the blockchain technology, he also said that those investing in Bitcoin should ”get out” of the market as soon as possible.
Belfort joins other cryptocurrency non-believers who question the cryptocurrencies but accept the practicality of blockchain technology. Jack Ma, co-founder of Alibaba, has famously echoed this sentiment in the past – praising blockchain technology whilst denouncing Bitcoin.
Although these comments could naturally be Belfort’s honest opinion, they could also be seen as an effort to spread FUD (Fear, Uncertainty, and Doubt) amongst investors. FUD is an important factor in all investing, as prices largely depend on the sentiment of buyers.
Moreover, some have proposed that this is mainly a bid for Belfort to ”remain relevant” by offering his take on one of the most hotly debated topics in the world.
Belfort has previously made his negative stance in relation to cryptocurrencies known, stating that Bitcoin is ”a fraud” and that ICOs could be regarded as ”the biggest scam ever”. It doesn’t take a genius to discern that Belfort may not be entirely neutral in his comments – although they will be sure to make headlines.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.