Wolf of Wall Street Jordan Belfort Promotes Bitcoin as Hedge Against Inflation
Bitcoin and the rest of the cryptocurrency industry are facing a reckoning right now.
After years of unbelievable growth, the price of Bitcoin has plunged nearly 70% since November, but here’s why Jordan Belfort, aka the Wolf of Wall Street, still believes BTC is a good hedge against inflation.
Few, if any, of the promised advantages of Bitcoin (BTC) and other cryptocurrencies have yet to materialize. The number of legitimate businesses that accept cryptocurrency as payment is so tiny that their use as actual currencies is virtually nonexistent.
The general public appears to be waking up to this fact and is fleeing the crypto industry in droves. The rush for the exits has been so great that crypto exchanges and other crypto-adjacent firms are going out of business en masse.
Platforms like Celsius Network (CEL) and 3AC were exposed as Ponzi schemes after a lack of new customers made them unable to meet their liabilities. They reacted to this lack of capital by locking down their platforms and preventing further trading, deposits or withdrawals. Investors’ assets are gone, and the decentralized nature of crypto means nobody is coming to help them.
Despite these existential crises facing the industry, Jordan Belfort, aka The Wolf of Wall Street, believes that cryptocurrency, and Bitcoin, in particular, can be used as a hedge against inflation. As someone who made a fortune and became famous for scamming investors by convincing them to buy worthless penny stocks, Belfort is intimately familiar with shady investment activity.
The main issue that Belfort believes Bitcoin investors should understand is that it’s not a get-rich-quick scheme. He thinks that investors should have at least a two-year time frame on their investment and shouldn’t expect the price to shoot up as it did previously. Instead, he thinks it will slowly and steadily go up at a rate just above inflation.
For this to come to pass, Belfort believes that institutions such as pension funds need to enter the industry to provide stability; the current ownership structure is virtually all short-term retail investors, leading to increased volatility. However, the recent implosion of large crypto platforms is likely a significant deterrent to institutional investors, who tend to be more conservative; these institutions will probably never enter the industry, at least in their current form.
Bitcoin is currently changing hands at $20,677.50, up +2.5% on the day. YTD BTC is down -56.68%.
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs, or cryptocurrencies mentioned in this article.
