Photo: Michael Förtsch/Unsplash
Popular public figure Jordan Belfort, who is better known as the “Wolf of Wall Street,” advised investors to look at Bitcoin as a long-term investment. In his opinion, those who hold the asset for more than 36 months are likely to make some profit.
Jordan Belfort has not always been positive about Bitcoin. In 2018, he even argued that Bitcoin is based on the Great Fools Theory and investors should get out of its ecosystem before losing all their money. However, like many before him, he changed his mind amid the spring 2021 bull market and even suggested that Bitcoin could reach $100,000 by the end of the year.
During his recent interview with Yahoo Finance (via CryptoPotato), he was even more optimistic about the future of Bitcoin. He praised its limited supply of 21 million coins, noting that as inflation continues to rise, Bitcoin will “start to trade more like a store of value and less like a growth stock.” In addition, Belfort believes that the leading digital asset can be a suitable investment vehicle as long as people have “diamond hands” and do not sell it for a period of 3-5 years, even though price fluctuations will imminently occur:
“If you take a three or maybe five-year horizon, I would be shocked if you didn’t make money because the underlying fundamentals of bitcoin are really strong.”
Belfort acknowledged that Bitcoin is still in its infancy, so it's okay for it to correlate with the NASDAQ and tech stocks and not trade as a hedge against inflation, similar to gold.
“There is no real institutional ownership in bitcoin, for instance, you don’t have a teachers pension fund owning bitcoin for a ten-year hedge, it’s not like that yet.”
The Wolf of Wall Street also talked about how people need to protect themselves from cryptocurrency scams. “In crypto, you can go out and raise money, but there is no disclosure, and every time there is no disclosure, it always ends badly,” he stated. He advised investors to be careful when dealing with some cryptocurrency projects and get familiar with its executive team. He warned people to check their real usefulness before investing.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.