Former financial fraudster Jordan Belfort, whose story formed the basis of the memoir and the movie “The Wolf of Wall Street”, admitted the fallacy of his position on Bitcoin in the past. In a conversation with Fortune, he recalled that he held extremely negative views on the prospects for cryptocurrency in previous years.
“When it climbed to $ 19,000 at the end of 2017, I was on a TV show and told the audience that it was going to collapse,” Belfort recalls. – Then I was right, but I also thought that Bitcoin would be gone forever. It was difficult to sell and easy to buy – just what is needed for manipulation. “
The former broker expected regulators to end Bitcoin’s existence: “Bitcoin seemed to be the perfect vehicle for money laundering. I thought they would start finding Bitcoin-related accounts in Switzerland and the Cayman Islands. I thought that initially bitcoin would be delayed, but then it will be eliminated by regulators. “
Belfort contrasts bitcoin with shares, noting that the latter cannot grow forever, since the company will issue more or will pay them for the purchase of other companies. “If a share sells for $ 400 and its intrinsic value is $ 200, the company has a fiduciary obligation to sell the shares and put the money in reserves. You cannot raise a stock forever. Often it is the issue of new shares that drags the price down, ”he said.
Bitcoin in this sense attracts investors, as it has a limited emission. “People are spoiled by bitcoin. Bitcoin has a limited supply. In the case of shares, they can be issued in unlimited volumes, ”the speaker added.
Belfort now believes Bitcoin will become a long-term phenomenon, as the all-out regulatory ban that he predicted did not happen. “Bitcoin now has a much larger buyer base than ever before,” he said, adding that the price of the cryptocurrency has significant prospects for further growth. Belfort points to the $ 100,000 target as a target. The described advantage over stocks will contribute to its achievement, due to which investors can continue to move the price upward without fear of stopping due to a sudden increase in emission, he added.