Long Beach (CoinChapter): The self-proclaimed ‘Wolf of Wall Street’ Jordan Belfort has changed his tone on Bitcoin. Belfort, of whom the 2013 movie was made after, had previously been a Bitcoin bear, but has now turned bullish on the world’s largest cryptocurrency.
Belfort said that Bitcoin when compared with stocks, is more about “pure supply and demand” in an interview with Fortune. He added that the crypto is “free from the distortion of effectively printing more of your own corporate currency.”
During Bitcoin’s previous bull run in 2017 Belfort echoed the sentiments of JPMorgan’s CEO that Bitcoin was a fraud. At that time Belfort believed that Bitcoin was not a “great model,” noting that it would require backing from central governments. Furthermore, Belfort said that Bitcoin would ultimately crash and “go away forever.”
“Sooner or later, a central bank or a consortium is going to issue their own cryptocurrency and that’s what will take hold.”
One major advantage Bitcoin has compared to stocks in the eyes of Belfort is its limited supply. “If a stock stays up too long, the company keeps printing shares,” Belfort argued. But the continued issuance of shares will eventually lead to dilution of value. Bitcoin on the other hand, “does not have the equities’ problem that high prices tend to bring on more supply (thus) turning the surge into a swoon.”
Jordan Belfort Cites Increased Investor Support For His Change On Bitcoin
Belfort also mentioned the increased investor support as reasoning for his change of heart. Many major companies like Tesla and Visa have jumped into crypto and that looks as if will continue. But the limited supply won’t allow for the value to go down. “New investors will keep pumping the price, but the rush of new shares that deflates a soaring stock can’t happen.
Belfort plead guilty to stock fraud and money laundering in 1999, spending nearly two years in prison. He reportedly fleeced small investors out of nearly $200 million. Since then however, he has become a motivational speaker and consultant.