A former broker, Jordan Belfort, was thrown behind bars for defrauding unsuspecting investors. Belfort says that Bitcoin (BTC) is the next exit-scam that will leave many retailers and merchants flat broke. After serving nearly two years in prison on fraud, Belfort noted that people have been brainwashed to accept BTC. He doesn’t seem to have a problem with calling himself a scammer.
Belfort ran a mini-brokerage house in Stratton Oakmont. In 1999, he was arrested and accused of talking people into buying stocks that turned out worthless. His story was made into a film, Wolf of Wall Street. In the flick, Leonardo DiCaprio played the role of Jordan Belfort.
Manipulating the Market
His sales’ gimmick was perfected in a way that he had an army of foot soldiers. With these guys scattered all over the country, they went about convincing people to make purchases. In order to manipulate the market, Belfort laid emphasis on demand. At some point, he realized a sizable number of people buy his stocks. At this point, he dumped the stocks and made off with millions.
Bringing Scam and Fraud to the Internet Age
Today, the Internet fuels such exit-scams as it (the Internet) makes it so easy. In the crypto-sphere, it is known as ICO (initial coin offering). ICOs, which are token-oriented fundraisers, are used to scam both novice and sophisticated investors. More often than not, ICOs are used to defraud people. As a result, cryptocurrency ads are outlawed or heavily regulated on Google, Facebook, and Twitter.
In his language, Belfort said that a lot of people will get slaughtered as a result of cryptocurrency. He was clear in saying that virtual currency will burst like a bubble. When it happens, the whole world would feel the impact. Belfort forecasted that the burst was going to happen this year.
Also, he challenged the claims on BTC security and that Bitcoin is capable of eliminating central banks. He also questioned how possible it could be that the government would allow anonymous currency without regulations.
Indeed, Belfort is not the only one criticizing Bitcoin as lots of corporate leaders in the United States have done the same. From Jamie Dimon to Bill Gates, Ray Dalio to Warren Buffet, they have all criticized the digital currency. Billionaire entrepreneur Warren Buffet was quoted as calling it “rat point squared” in May 2018. He lashed out at Bitcoin ahead of multinational conglomerate Berkshire Hathaway meeting.