Investors should consider bitcoin as a long-term option. This was the advice of Jordan Belfort, better known as “The Wolf on Wall Street”, He believes that those who have the asset for more than 36 months are most likely to make some profit.
Belfort’s Crypto Guidance
Jordan Belfort, the notorious stockbroker whose story inspired Martin Scorsese’s film “The Wolf of Wall Street”, has not been kind to the primary cryptocurrency. He stated that bitcoin was based on The Great Fools Theory in 2018, and that investors should leave the ecosystem before they lose all their money.
Belfort changed his mind and predicted that the asset would reach $100,000 in the spring 2021.
During his recent interview with Yahoo Finance, he doubled down his support. He spoke highly of the 21 million coins that exist and said that bitcoin would “start trading more like a store-of-value than a growth stock” as inflation continues to rise.
“The Wolf of Wall Street” believes that the most valuable digital asset is an investment tool. However, it must be held in “diamond hands” for at least 3-5 years. (Even though price fluctuations are imminent).
“If you have a three-year or five-year time horizon, I would be surprised if you don’t make any money. The underlying fundamentals of Bitcoin are very strong.”
The American opined later that bitcoin was still in its early stages, and it is normal for the NASDAQ to be correlated with tech stocks and not to trade as a hedge against inflation (similarly to gold).
He said that there isn’t any institutional ownership of bitcoin. For example, a teachers’ pension fund doesn’t own bitcoin for a ten year hedge.
Jordan Belfort Source: BBC
The dangers of the crypto industry
Belfort also shared his thoughts on how to protect yourself from scams involving cryptocurrency. The lack of comprehensive rules in the digital asset industry is a major reason why “people are being slaughtered” as compared to traditional finance.
He stated that crypto is a way to raise money but not disclose it. And every time there’s no disclosure, it ends badly.”
He advised investors to be cautious when dealing with cryptocurrency projects and to get to know its executive team. Belfort believes protocol with unknown owners should cause concern.
He also advised people to verify the utility of any projects they are considering investing in. He said that if a company’s idea works better with a central server, he would not invest in it.
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