Original Wolf of Wall Street Says Bitcoin Will Crash - and Mentions Something Smart

I wondered if I should write an article about bitcoin and cryptocurrency. I asked myself i could add anything to the discussion, but after seeing a video of Jordan Belfort (the original Wolf of Wallstreet) where he talks about "safety" and advising people not to invest anything, I thought I could at least spread the warning and explain why he has a point. Because it always funny when a scam artist mentions that bitcoin is one of the biggest money making scams ever , but what he says in this video, is actually quite receptive. 

Let's translate what Jordan is saying:

Jordan Belfort mentions that although Bitcoin is being positioned as a currency, it is almost never used in that capacity. He says that Bitcoin is being used as an investment vehicle. And I have to agree with him. Even bitcash, Ehereum and other so called "products and/or crypto currencies", are not being used as they were intended (or structured). It is only a way to speculate on something that has an assigned value based on nothing (substantial). Of course most could be said about other currencies, but I think we can agree that, unless any of the crypto currencies are going to be accepted by both government and adopted by people as a valid way of payment, it will remain in this bubble of perception.

Talking about the Float

Another part which I particularly like is him talking about the Float in Bitcoin currency (3:02 in video). (Free Float is explained further in the image above). It is true that a lot of the bitcoin that has complete market cap of around 200 billion dollars (Jordan mentions 200 billion, which was based on the old number, with current trading pricing this is closer to 100 billion dollars) ), only a very small amount is actually going around and is publicly traded, meaning that speculations and groups like "Big Pump Signal" (with 200.000+ members) can really make or break a currency for a day. 

Stay safe

So unless you know the difference between going short, and going long, between structured investment vehicles and futures and have the time to trade quicly, I would suggest that you keep your hard earned money in your pocket. Stay safe, as you can read there is a huge need for balance, government acceptance, and everyone investing now in these investment vehicles without knowing what they are doing are going to be screwed big time. And the fact that one of the biggest financial scam artists ever is talking about this in a way that you see he is jealous about the scam, should tell you everything you need to know. In my eyes this says nothing about the potential of blockchain technology, so please do not confuse the two. My warning is about investing in crypto currencies, and nothing else.

All views expressed are my own.