Bitcoin

Wolf Of Wall Street Jordan Belfort Calls Bitcoin A Major Scam That Is About To Crash

BitcoinWolf of Wall Street Jordan Belfort hit the media circuit this week proclaiming that the cryptocurrency Bitcoin is a huge scam. Belfort also predicted that the value of Bitcoin will plummet sooner rather than later.

He told the Financial Times:

Promoters are perpetuating a massive scam of the highest order on everyone. Probably 85% of people out there don’t have bad intentions but the problem is 5% or 10% are trying to scam you.’

Belfort should know about scams. He ran a $100 million boiler room stock manipulation scheme that landed him in prison.

Bitcoin blasted to another all-time high of almost $18,000 on the Bitstamp exchange on Friday. It continued to rise even as warnings grew over the risks of investing in the highly volatile and speculative instrument.

The cryptocurrency’s price has increased 1,700% since the start of the year. This drastic increase has driven worries that the market is a bubble that could burst in a spectacular fashion.

The cryptocurrency has also climbed almost 80% in December alone. The surge has put it on track for its best month since December 2013.

On Friday it reached as high as $17,900 on the Luxembourg-based Bitstamp exchange.

Bitcoin trading has been slightly calmer than the wild price swings the market has seen in recent weeks, with volatility lower since the launch of Bitcoin futures from Cboe Global Markets on Sunday.

Belfort told CNN he thinks Bitcoin’s value will rise in the short term before crashing:

I think it’s a huge danger right now that people are looking at this as the next great thing, it’s a bubble for sure.

Andrew Bailey, the head of the British government’s Financial Conduct Authority, told the BBC on Thursday that anyone who invests in Bitcoin should be prepared to ‘lose all their money.’

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