In a recent interview, Jordan Belfort, the man whose memoir “The Wolf of Wall Street in 2007” was adapted into a film (released in 2013), explained why in the long term he expects Bitcoin to be a profitable investment.
“This idea of scarcity with bitcoin is completely false because what happens when you have something like cryptocurrencies, they all trade in one giant basket. So, while there might be only 21 million bitcoin, every time they create a new cryptocurrency there’s more cryptocurrency…
“It’s a bubble and I promise you, and you’re right it could go to $50,000, it could go to $100,000, but I’m certain at the end of the day it will end up close to zero, that’s the bottom line…
“People are essentially taking these basically worthless instruments and pumping them up with a story that it’s the next great thing. This is never going to be a mainstream currency, it’s not going to be, there’s too many problems with bitcoin.“
On June 5, Belfort, whose view of Bitcoin has really changed in the past couple of years, admitted that he was wrong about the flagship cryptocurrency during an interview on episode 1 of Yahoo Finance’s new show “The Crypto Mile”.
“At the time that I really hated crypto. I stand by everything I said about crypto in 2017 except for one thing. I was wrong about Bitcoin going to zero.“
And when asked what he thinks is a better inflation hedge, gold or Bitcoin, Belfort replied:
“I think the issue right now is you have to look at Bitcoin and not take a 12-month or 24-month horizon. With reasonable luck, I think if you take a 24-month horizon, you’ll almost certainly make money, maybe not.
“But I think if you take a three, four, or five year horizon, I would be shocked if you didn’t make money because the underlying fundamentals, I believe, are really strong. There’s a limited supply and as inflation does keep going and going and going, at some point in time, there’ll be enough maturity with Bitcoin where it starts to trade more like a store value and less like a growth stock.“