Jordan Belfort, known as the Wolf of Wall Street, expects bitcoin and ethereum to go “much higher” than they are now. Noting that the collapsed cryptocurrency exchange FTX was a scam, he said its implosion “doesn’t mean completely ignoring bitcoin and saying it’s worthless or going to zero.”
The monster of Wall Street calls FTX a scam
Former stockbroker Jordan Belfort, whose memoir was adapted into the movie The Wolf of Wall Street, shared some advice on bitcoin and ethereum in a YouTube video on Monday. The film was directed by Martin Scorsese and starred Leonardo DiCaprio.
Belfort founded Stratton Oakmont, which operated as a boiler house that sold penny stocks and defrauded investors. He became a motivational speaker in 1999 after serving 22 months in prison for fraud.
“FTX was a scam and there is no way to protect against such a scam,” Wolf of Wall Street described regarding FTX, the cryptocurrency exchange that collapsed and went bankrupt on November 11th. He added:
But just because FTX itself is a scam, that doesn’t mean you can completely ignore bitcoin and say it’s worthless or going to zero. The same is true for ethereum.
Belfort recommends holding Bitcoin and Ethereum
Belfort believes that the price of Bitcoin and Ether will increase significantly despite the recent sell-off in the cryptocurrency market and the decline in FTX. However, he remains skeptical of other coins, noting that he “wouldn’t touch crypto with a 10-foot pole any time soon,” along with the two biggest cryptocurrencies.
For those who already own other cryptocurrencies, he recommends “taking a step-by-step approach to each coin” to decide whether to sell them and when it would be a good time to sell. “It should be based on what you’re buying and what you think it’s worth right now,” he said.
Investors should research the fundamentals of each token and ask why they bought the coin in the first place, Belfort advised. “Was there something behind your purchase, did you expect good news to come out, do you think the company is really doing something and we’re going to have some breakthrough technology?” – he asked.
However, if investors were buying cryptocurrency “on a dumber theory, that you think somebody dumber than you is going to come along and buy it at a higher price than you,” Belfort suggested, “Anything outside of Bitcoin and ethereum. , I was going to take a close look at it and maybe think about selling it.” Referring to the dot-com bubble, where 99% of deals crashed and never came back, he explained:
Do some analysis, do some research… Is there any problem that this coin or token solves, or are we just buying into all the hype and hoping it continues, because if so, you honestly know the chances are . these things will never come back.
Belfort also revealed that he plans to buy more bitcoins and ether. While warning that the two cryptocurrencies could drop further in the near term, he opined:
I think right now, if you buy bitcoin or ethereum here, it’s a very good bet. [they] In 5-10 years it will be significantly higher – actually higher, I believe.
“If you’re buying bitcoin or ethereum, it should represent a very small portion of your overall investment portfolio,” Belfort said, noting that he would limit crypto investments to “less than 10%” of his total holdings. “It’s actually money you can speculate on. You can lose it.”
What do you think of Jordan Belfort’s advice on bitcoin and ethereum? Let us know in the comment section below.
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