Wolf of Wall Street calls bitcoin a "scam"

Just watched the Wolf of Wall Street, Jordan Belfort, telling people on Varney's Fox Business show that bitcoin is a scam. That was the headline.... of course, he backtracked off that statement once the interview started, saying it's the way it's being traded that's a scam.

Belfort operated a scam of his own, defrauding investors back in the 1990s through his brokerage, Stratton Oakmont.

His criticism is that bitcoin isn't being used as a currency, but rather as an investment. Investors are hodling, so free trading float is very small. Which is hilarious to me. How dare BTC investors hold? It's a typical argument made by Keynesian Fed types... holding a resource back (whether dollars or crypto) makes it impossible for others to "earn" it, which is bunk that Bastiat disproved hundreds of years ago.

So Belfort is worried that a small supply and high demand is driving the price up, creating a bubble, and of course he'll be proved "right" when the futures contracts go into effect next month and send the price into a tizzy.

What made me laugh about this interview, though is that Belfort is genuinely concerned for millenials, who he actually said are too stupid to understand how bubbles form. He's worried these millenials are buying in blindly. LOL

But he assured Varney he likes blockchain technology and is looking forward to future versions introduced by a bank or government that will be regulated. Wouldn't that be great? Belfort thinks so. Meh. Once a criminal... always a criminal. And a perfect mouthpiece for the Fed.

image from pixabay.com