The author and former stockbroker known as “The Wolf of Wall Street” Jordan Belfort has changed his previous critical stance on the flagship cryptocurrency bitcoin, and is now predicting its price will rally to $100,000.
In an interview with Fortune in which Belfort addressed the Gamestop stock rally fueled by Reddit traders, Belfort pointed out that compared to equities, BTC’s fixed supply gives it an advantaged as if a “stock status up too long, the company keeps printing shares.”
This, he argued, dilutes the value of the company. Bitcoin does not have this problem as no more than 21 million BTC can ever be issued and as such, high prices are not going to see more BTC enter the market. In fact, the opposite may be true as each halving the cryptocurrency’s inflation rate drops.
Asked why he turned from being a bitcoin bear, Belfort pointed to bitcoin’s fixed supply as a critical “advantage over company stocks,” and added:
New investors will keep pumping the price, but the rush of new shares that deflates a soaring stock can’t happen.
In 2018, when the price of bitcoin was dropping from a then all-time high near $20,000, Belfort implied bitcoin was a scam. He said the “whole thing is so stupid, these kids have gotten themselves so brainwashed.” He added it was “going to evaporate like a mirage.”
The former American stockbroker spent 22 months in prison for running pump-and-dump scams that led to investor losses of approximately $200 million. He subsequently wrote a memoir called “The Wolf of Wall Street,” which was turned into a film in 2013.
Featured image via Pixabay.