In 2017, Belfort said that he “hated” cryptocurrencies like Bitcoin because of the market’s prevalence of fraud.
In an interview with Yahoo Finance on August 27, Jordan Belfort, the person who served as the inspiration for the critically acclaimed film The Wolf of Wall Street, acknowledged that his prediction that the price of Bitcoin would drop to zero was incorrect.
Although it has been gradually changing over time, this is still a negative consequence of decentralization.
“At the time that I really hated crypto, I stand by everything I said about crypto in 2017 except for one thing, I was wrong about BTC going to zero, but I didn’t look closely enough because I just said it’s a scam because it just seemed like that because in all the ear markings of that,”
Bitcoin Has Demonstrated It Is Not A Scam.
Belfort, a self-described fan of NFT Twitter, said that the price of Bitcoin “caused it to fall and go down to $3,000,” which is when he changed his view.
The billionaire began to look more closely at the project after the 2018 collapse when the price of BTC did not drop to zero as he had anticipated, i.e., it did not fall all at once as Terra (LUNA) did.
“What turned me, was slowly but surely, number one when it crashed and it went down to three thousand dollars, like it was still like a multi-billion dollar market, I’m like wait a second, when things crash they go like luna terra and UST that’s what happens, they’re supposed to go the way of UST, that was the first thing that made me start looking closely at it”
At the time, Belfort was also concerned that American restrictions might hinder the spread of Bitcoin, much as China had been attempting to accomplish.
In contrast to China, a number of senators and governors in the U.S. support BTC and are seeking to prevent restrictions from slowing its growth.
Low cap crypto is seen as a long-term investment by Jordan Belfort
According to Belfort, investors shouldn’t expect to see a return on their Bitcoin investments within a year or two.
They should ideally have a horizon of four to five years. He would be “surprised” if they didn’t earn money throughout that time period due to the solid “underlying foundations” of Bitcoin.
“At some point in time, there’ll be enough maturity with bitcoin where it starts to trade more like a store of value and less like a growth stock.”
Regulating the cryptocurrency industry is necessary, according to Belfort, since there are much more scams and frauds in the cryptosphere than there are in regular markets.
The stock market allows even the typical individual with little experience to trade and generates respectable gains.
In contrast, “people get butchered” in the cryptocurrency market. And if the appropriate pro-innovation rules are in place, this situation may change.
He stated that any other investments he would make in cryptocurrencies would be for speculative purposes or for gaming with his friends and that such a move would require investors to be willing to lose everything.