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Another Critic Adds up on Bitcoin’s List – Jordan Belfort “Fraud”

Jamie Dimon previous critic naming Bitcoin a fraud has been joined by another prominent figure: the “Wolf of Wall Street” Jordan Belfort.

Jordan Belfort has echoed recent comments from JP Morgan CEO Jamie Dimon who asserted that bitcoin is ‘fraud‘, in a conversation with The Street. “I think he’s right,” Belfort stated, agreeing with Dimon’s much-publicized comments. “I don’t think that it is a great model.”

From his point of view, the virtual currencies will take a place in society only when they are supported by a central gov.

“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.”

Belfort, now an author and motivational speaker, plead guilty to stock market fraud in 1999 and spent 22 months in prison as a part of his plea agreement. Belfrot’s memoir ‘The Wolf of Wall Street’ was adapted into a Hollywood movie directed by Martin Scorsese in 2013.

His main criticism is that of a decentralized currency which would run independent from any central authority:

 “[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.”

According to the ‘Wolf’ it is a matter of time before a central bank or a consortium introduces its own cryptocurrency which is truly going to hold.

“I’m not saying that you should or shouldn’t buy bitcoin. 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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