The "Wolf of Wall Street", Jordan Belfort, agrees with JP Morgan's Jamie Dimon calling bitcoin a "fraud".

Like Dimon, Belfort claims bitcoin has all kinds of issues, and like Dimon, Belfort said a various stupid things to back up his claims. In a recent interview Belfort says:

"Sooner or later, a central bank or a consortium is going to issue their own cryptocurrency, and that’s what will take hold."

Well it would at least make it possible for it to be valuable, but I don't think he realizes that some governments and banks are already trying to do this. I also don't think he realizes is these groups are the exact reason digital currency exists in the first place so it's kind of silly when you think about it.

If Bank of America makes BofA-Coin, rest assured a large portion of the current industry isn't going to be impressed.

I am certain there is a portion of the population that would like it, however, it's going to be a cold day in hell that a government or bank creates something like a cryptocurrency they can't control. That makes it vulnerable to foul play which ultimately makes it pretty worthless and no better than fiat money today.

Note that fiat money is already currently digital, so it's not going to be much of an improvement over the current system if any at all.

He offered opinions such as “I don’t think it’s a great model,” and “It seems kind of bizarre” which is fair enough, everyone's entitled to their own opinion, but in addition to holding out for BANK-COIN he claims bitcoins biggest problem is it's ability to be hacked.


That one took a couple second-glances to sink in. Belfort said this. His exact words were:

“the biggest problem I see from Bitcoin, and why I would never buy it, is because they can easily steal it from you through hacking. I know people who lost all their money like that.”

Apparently Belfort is unfamiliar with SHA-256 or the 6.4 Quadrillion years it would take with current technology to hack bitcoin underpinning technology, the blockchain. Truth is that bitcoin is the only financial network on earth that hasn't been hacked.

He claims he has "friends" that lost their bitcoin when someone hacked their phone. Well if that's the case then they were improperly storing their bitcoin somewhere without any thought of security and under that same scenario one could steal a multitude of sensitive information, money, credit cards, and other valuable items from one's phone.

If one is going to be an idiot, one is going to be hacked.

Properly secured with Two Factor Authentication on both Phone and Wallet (bitcoin wallet), secured private keys, and a current backup, one won't have this kind of silly problem.

Better yet, don't do something stupid like store "all of you money" on your phone. Seriously, who on earth does that? Does Belfort take "all of his cash" with him when he goes to the market? Of course not, nor would anyone store "all of their money" on their cell phone.

The three most notable things from his statements, at least to this author is that, one, Belfort clearly doesn't like bitcoin and is joining in the recent bash to get a soundbite. Two, he clearly doesn't understand bitcoin or how it even works, and three, Belfort's "bitcoin-phone-storing" friends are complete idiots.

Article by dinbits
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