Former penny-stock broker Jordan Belfort knows a thing or two about investment scams — but does he know what he’s talking about when he says Bitcoin is no different?Most people know Jordan Belfort as the protagonist portrayed by Leonardo DiCaprio in Martin Scorsese’s blockbuster Wolf of Wall Street. For those unfamiliar, Belfort operated an over-the-counter brokerage house called Stratton Oakmont, which liberated investors of their hard-earned funds by using manipulative and illegal tactics to sell penny stocks — actions which earned him two years in prison.
Penny CryptosWhile it’s hard to legitimately compare the entirely decentralized and open-source Bitcoin to a penny stock, Belfort may have a point regarding initial coin offerings (ICOs). A high percentage of ICOs have failed already failed, and many of those still alive lack any sort of working product. As noted by CNBC, prominent companies like Google, Facebook, and Twitter have outlawed ICO advertisements on their platforms.
Ripping Others OffOn top of that, Belfort claims that central banks and financial authorities will do whatever it takes to prevent Bitcoin from truly becoming a viable alternative virtual currency. What Belfort neglects to mention, however, is that Bitcoin is not truly anonymous. Well-trained investigators can fairly easily track illicit financial transactions via the public ledger. When it comes to controlling Bitcoin, however, it may ultimately be out of central banks’ control. What do you think about Jordan Belfort’s claims that Bitcoin and the cryptocurrency market are little more than scams? Do you think central banks have any say when it comes to Bitcoin? Let us know your thoughts in the comments below!
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