Jordan Belfort, better known as the infamous scam artist best known from “Wolf of Wall Street”, predicts a disaster for Bitcoin.
Former stock broker Jordan Belfort spent nearly two years in jail, charged and convicted of manipulation of stock prices and money laundering.
Belfort is not in doubt that bitcoin is the next thing that can blow small investors, CNBC writes.
– I was a fraudster. And that’s exactly what happens with bitcoin, he said to CNBC in a documentary on Monday.
Belfort led the Stratton Oakmont brokerage firm and accused guilty in 1999 to manipulate investors to buy stocks that eventually turned out to be worthless. He once had employees who called around the world and persuaded people to buy shares that he would later dump and take advantage of.
With the internet, this manipulation tactic has become easier, he believes. Facebook, Google and Twitter prohibit ads for cryptocurrencies and sale of tokens, so-called ICOs.
– This thing will evaporate like an airplane. There are many honest people who are going to lose a lot, Belfort told CNBC.
Transactions of bitcoin are listed under an alphanumeric code that does not reveal the identity of the trader. According to Belfort, such an anonymous structure is cause for concern.
“It’s not that bitcoin is a scam, but nature allows for fraud,” he said in a separate interview on CNBC’s Power Lunch Monday.
“It’s a dark market, you can not see what’s happening behind the scenes,” he said.
In the interview, he predicts that bitcoin may collapse during the year, and when done, it will be “the collapse everyone heard about”.