Bitcoin Market Has ‘Run Out Of Fools’, says Jordan Belfort
Everyone who has seen the ‘Wolf of Wall Street’ knows who Jordan Belfort is, and he is saying “I told you so” about Bitcoin prices’ recent retreat.
He recently shared a video on his YouTube channel, in which he claims that it’s the “beginning of the end” for Bitcoin as the market has run out of fools. He believes the market has not “even crashed yet” but he made sure to warn investors of an inevitable meltdown where they could “lose all of their money.”
He spoke about the “greater fool theory” in his video, which he believes is the main plague of the market and will ultimately lead to its end, echoing Bill Gates’ view that it is not a legitimate asset class. So what is the Greater Fool theory? It is an investment theory which believes the price of a security can be justified by a rational buyer who “foolishly” believes someone else can pay a higher price for it notwithstanding its intrinsic value. He emphasized that Bitcoin was not a store of value and also drew an analogy about the current dip in Bitcoin prices with the economic crisis of 2008 where investors were unable to find buyers for faulty mortgage-backed securities.
Belfort said that although he believes in Blockchain and its use-cases, he advises investors who are holding Bitcoin to “get out if you don’t want to lose all your money.” When talking about other investors who are bearish about the prospects of Bitcoin, what he says is that they have faith in the technology, but they don’t believe in the currency. He also referred to the Bank of International Settlement report, released earlier this month, where they remarked that although Bitcoin has its uses; it had too many limitations to be considered a medium of exchange that could replace money.
FUD has frequently affected the crypto market, and most online commenters believe that Belfort is only trying to spread FUD among investors who listen to him. This is not the first time Belfort is criticizing Bitcoin openly. He said the cryptocurrency was a fraud in an interview last year where he stated that as “[Bitcoin] is specifically being backed by nothing other than a program that creates artificial scarcity. It seems bizarre to me that it can ever really be sustainable.” Belfort doesn’t support ICOs either, and he refers to them as“the biggest scam ever.”