Yet another higher-profile criticism came against Bitcoin, this time in the “Wolf of Wall Road” himself, Jordan Belfort.
Belfort termed Bitcoin a fraud and mentioned that “the largest problem I see from Bitcoin, and why I'd personally in no way get it, is because they can certainly steal it from you thru hacking. I'm sure people who misplaced all their funds like that.”
It came only months right after Chase Bank CEO Jamie Dimon called Bitcoin a fraud, and made his distaste for Bitcoin crystal very clear when he advised he would fire any employee investing Bitcoin on the company’s accounts. On the other hand, JP Morgan acquired a sizable block of Bitcoins days after the CEO assertion.
But Jamie Dimon is not the only one with this perspective on Bitcoin. Ray Dalio, the founder and head of the world’s most significant hedge fund Bridgewater, recently stated that Bitcoin is “a remarkably speculative current market”, and actually is really a “bubble”.
Belfort also finds it “weird” that Bitcoin is simply backed by a method that produces artificial scarcity and stated that because of this, the electronic currency is just not sustainable.
Though Belfort thinks while in the strategy of cryptocurrencies, he said the current product holds too many troubles. According to him, You will find there's upcoming for digital currencies, but he thinks it’s important for digital coins for getting “some type of backing” by central governments.
In his viewpoint, a central bank will sooner or later introduce their own individual cryptocurrency, that will be more sustainable.
“There'll be described as a time when Most people is freaking out about Bitcoin and dumps it and who knows what’s heading to occur?”
Inside a condition like that there’s no buffer, as an example the Federal Reserve, to cushion the blow.
He issued a final warning to buyers and explained, “Be very watchful not to take a position some huge cash into a thing that could vanish very quickly.”