The 'Wolf of Wall Street' has some words to share about Bitcoin

Moneycontrol News

Former penny-stockbroker Jordan Belfort recently stated that bitcoin might be the "next big trap" and it could leave some retail investors penniless.

In an interview with CNBC, the 'Wolf of Wall Street', shared his apprehension about the most sought-after cryptocurrency- Bitcoin- stating that it is going to "evaporate like a mirage".

"I was a scammer. I had it down to science, and it's exactly what's happening with bitcoin. The whole thing is so stupid, these kids have gotten themselves so brainwashed."

According to Belfort, Bitcoin would drain off retail investors of their funds. Due to Internet, manipulation technique has become easier and cryptocurrency fundraising, known as Initial Coin Offerings, has turned out to be scams, several times.

He added that if the cryptocurrency market goes bankrupt, it would be a major global problem. Belfort further challenged bitcoin's security, as it has been stated that it could dissolve the need for central banks and it has been argued that the governments would allow bitcoin to function without regulation.

Belfort, known for his over-the-counter brokerage firm Stratton Oakmont, spent two years in imprisonment after pleading guilty for stock manipulation in 1999.

He manipulated investors around the world into buying stocks that eventually turned out to be worthless. Belfort was the inspiration behind Martin Scorcese's 2013 black comedy 'Wolf of Wall Street', where he was played by actor Leonardo Dicaprio.