The former stockbroker Jordan Belfort is the very man whose life the cult film “The Wolf of Wall Street” was made of. Today, Jordan is no longer playing in the market, but is engaged in sales training and consulting businessmen and investors. And he is known as one of the experts of the financial market with a sharp negative position in relation to Bitcoin.
What does a real wolf on Wall Street, Jordan Belfort, think about Bitcoin and what does he advise market participants to cryptocurrency?
The story of the wolf from Wall Street
The goal of Jordan Belfort has always been financial independence, and simply put wealth, and therefore he was looking for an opportunity to earn as much money as possible. There is a fact in his early biography when Jordan dropped out of his job as a dentist, after the dean of his college said that the “golden age” of this profession had already passed and it no longer brings quick and easy money.
To achieve his goal, Belfort becomes a broker and begins the legendary march along Wall Street. In 1989, he founded Stratton Oakmont, an over-the-counter brokerage house that traded cheap shares of obscure companies. In fact, Belfort and his team were involved in a Pump & Dump fraud, buying up junk stock at a low price, and then manipulating the market in order to cheat their value for a profitable resale. It is known that Stratton Oakmont used all methods to maximize profits, including specifically blocking customer transactions if it was not profitable for the company.
FBI launched an investigation into Stratton Oakmont almost immediately after the company was founded. But this did not prevent Belfort from earning millions of dollars by manipulating the market until 1996, when Stratton Oakmont was officially closed by a decision of US financial supervisors. Two years later, Jordan Belfort was charged with fraud in the securities market and money laundering. He made a deal with the investigation and, due to his testimony, the FBI was able to reach a number of similar brokerage companies. For this, Jordan was sentenced only to 22 months in prison.
In prison, Jordan has the idea to write a book and tell the whole world the story of his life. Then, on it, the famous director Martin Scorsese will shoot the iconic film “The Wolf of Wall Street” with Leonardo DiCaprio in the lead role. Belfort was actively involved in the shooting as a consultant. As Jordan himself said, in the movie the parties are shown more restrained than they were in reality. And also from his history removed all the information about the politicians with whom he dealt.
Today, a real wolf on Wall Street lives in the United States and earns his life by providing courses on how to train sales and advise businessmen. He is also often invited to financial TV shows as an expert.
What does Jordan Belfort think about Bitcoin
Jordan Belfort is one of the most ardent critics of Bitcoin and cryptocurrency. That's what he said in an interview with CNBC in August 2018.
I was a crook. I brought the fraud to the level of art, this is exactly what is happening with Bitcoin. Everything is so stupid, these kids are brainwashed.
But in order to fully understand the attitude of Belfort to Bitcoin, you need to refer to his previous interview, where he explains that he has no claims specifically to Bitcoin. When Jordan talks about fraud, he is referring to manipulating the course of cryptocurrencies, because of which many investors risk losing all their money.
I’m not really against bitcoin. I do not consider it a scam, but bitcoin surrounds a bunch of scams.
Also, Belfort does not consider fraudsters those who invented and created Bitcoin. In his understanding, it was a group of financial anarchists who decided on a bold experiment.
Forecast of the future cryptocurrency from Belfort
According to Jordan Belfort, the Bitcoin market and all cryptocurrencies will collapse to zero sooner or later, because it has no prospects for further development. Banks and states will never accept Bitcoin as an alternative economy, because they do not want to lose their monopoly on managing money.
In the future, only blockchain technology will remain in place of the cryptocurrency, in which the wolf on Wall Street sees great potential.
But the blockchain technology, will then be responsible for your card, and for all sorts of tranches, will be very useful. This is a great technology that will adjust, track and reduce costs. Financial institutions will freak you out, as before, but they will cut costs and simplify financial transactions.
He also does not exclude the fact that Goldman Sachs and other large banks will issue their cryptocurrency.
How to make money on Bitcoin, the advice of a wolf from Wall Street
Despite the fact that Jordan Belfort himself does not believe in Bitcoin and is not going to invest in cryptocurrency. He believes that in this market you can earn a decent condition.
To do this, you just need to follow two rules. The first one is do not rush to receive the award, that is, do not sell immediately when your investments show the first growth. Belfort himself regrets that because of the rush and luck, he earned several million where it was possible to get a billion.
Belfort’s second rule is: do not invest more than you can afford to lose and constantly monitor the market in time to exit.
You can invest money now, but act carefully. You definitely need a quick exit plan. Do not invest more than you can afford to lose. And do not forget that you are standing outside, and the people inside have their own plan.