Jordan Belfort: Bitcoin is too risky, better wait for bank-issued cryptocurrency

Jordan Belfort, a real-life prototype for The Wolf of Wall Street movie protagonist, has called Bitcoin a fraud, sharing Jamie Dimon’s sentiment in an interview with TheStreet reporter.

Belfort told that today, cryptocurrency lacks proper governance, and told that the vulnerability of Bitcoin to hackers worries him enough not to invest in this currency. Moreover, Bitcoin is backed by nothing and its fluctuations without the Federal Reserve to help and control market panics, it will not live long, Jordan Belfort insists. He also remembered the Mt Gox disaster when the “bank”, as he called this infamous financial entity, turned out very bad for Bitcoin enthusiasts who held money there.

Jordan Belfort. Image courtesy of TheStreet

But cryptocurrency overall is not a fraud, or rather, it will stop being a fraud when banks start to produce their official cryptocurrency, Jordan Belfort believes. He also implied he supports the decision of the Chinese bank to restrict cryptocurrency: “The Fed has been quiet about Bitcoin lately…” – said the reporter and Mr Belfort answered: “Well, the Chinese central bank has not!” and shortly told about the recent restrictions. He, however, stressed that it’s all only his opinion and here he doesn’t instruct anyone how to play on the market.