Earlier this month, Jamie Dimon – CEO and JP Morgan boss expressed his harsh and critical views in an interview saying Bitcoin as ‘ A Fraud’. Even though Jamie received a lot of criticism for his comments on Bitcoin from fans and the Bitcoin-investor-community, it seems he his not just alone in being a harsh critic for Bitcoins.
Jamie’s views were later echoed by Ray Dalio, founder of the World’s Largest Hedge Fund – Bridgewater Associates who also claimed Bitcoin to be nothing else but a ‘bubble’. Now Jordan Belfort, famously known as the ‘Wolf of Wall Street’ is going critical about Bitcoins and says : “I don’t think it’s a great model.”
It is not that Jordan doesn’t believe at all in the concept of cryptocurrencies, but it seems that he has less faith in its decentralized model of functioning. While speaking with TheStreet publication, he said:
“I’m not saying cryptocurrencies, there won’t be one – there will be one – but there has to be some backing by some central governments out there. Sooner or later, a central bank or a consortium is going to issue their own cryptocurrency and that’s what will take hold.” He further added: “[Any] currency [is] always air I guess, when you think about it…But this [bitcoin] is specifically being backed by nothing other than a program that creates artificial scarcity. It seems bizarre to me that it can ever really be sustainable.”
Belfort, not only criticised the existing model backing Bitcoins, he also raised questions regarding cyber-security issues pertaining to storage of Bitcoins and how it is more vulnerable to be stolen. He said:
“The biggest problem I see with bitcoin – why I would never buy it – is that they could steal them from you. They hack into your phone.I know people who lost all their money like that.”
Jordan Belfort is now an author and motivational speaker and was one of the most well-know traders of Wall-Street. However, in 1999 he pleaded guilty of money laundering and stock fraud.
While concluding his interview, he said:
“I’m not saying you should or shouldn’t buy bitcoin, but [what] I’m saying is I personally, myself, would be very, very careful about investing a lot of money in something that could vanish very quickly.”
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