Yet one other high-profile criticism came against Bitcoin, this time from the “Wolf of Wall Street” himself, Jordan Belfort.
Belfort known as Bitcoin a fraud and mentioned that “the biggest problem I see from Bitcoin, and why I would never buy it, is because they can easily steal it from you through hacking. I know people who lost all their money like that.”
It got here solely weeks after Chase Bank CEO Jamie Dimon called Bitcoin a fraud, and made his distaste for Bitcoin crystal clear when he prompt he would fireplace any worker buying and selling Bitcoin on the corporate’s accounts. However, JP Morgan purchased a massive block of Bitcoins days after the CEO assertion.
But Jamie Dimon shouldn’t be the one one with this view on Bitcoin. Ray Dalio, the founder and head of the world’s largest hedge fund Bridgewater, lately stated that Bitcoin is “a highly speculative market”, and in reality is a “bubble”.
Belfort additionally finds it “bizarre” that Bitcoin is simply backed by a program that creates synthetic shortage and mentioned that as a result of of this, the digital foreign money shouldn’t be sustainable.
Although Belfort believes within the idea of cryptocurrencies, he acknowledged the present mannequin holds too many issues. According to him, there may be a future for digital currencies, however he thinks it’s important for digital cash to get “some sort of backing” by central governments.
In his opinion, a central financial institution will eventually introduce their very own cryptocurrency, which can be extra sustainable.
“There will be a time when everybody is freaking out about Bitcoin and dumps it and who knows what’s going to happen?”
In a scenario like that there’s no buffer, for instance the Federal Reserve, to cushion the blow.
He issued a ultimate warning to traders and mentioned, “Be very careful not to invest a lot of money into something that could vanish very quickly.”