Former stockbroker Jordan Belfort believes that investing in bitcoin in the long run can protect investors’ funds from inflation.
Previously, Jordan Belfort was convicted of fraud related to the securities market. His memoir inspired director Martin Scorsese to create the famous film The Wolf of Wall Street. In a recent interview, Belfort recommended that investors buy bitcoin not for short-term market manipulation, but for long-term storage. According to him, there will come a time when BTC will be traded as a store of value, and not as an investment vehicle with the prospect of growth. This is due to the fact that the supply of the first cryptocurrency is limited to 21 million digital coins, and inflation in the world continues to grow.
“If you look beyond the 24-month horizon, you can definitely make money if you’re lucky. If you take a three- or five-year period, I will be shocked if you do not make money, because the basic principles of bitcoin are unshakable,” Belfort said.
An American trading expert has identified two types of investments in the cryptocurrency space: investing in protocols with long-term fundamentals and investing small amounts in cryptocurrency projects with ultra-low market capitalization. The former Wall Street stockbroker believes that the latter can bring huge profits to venture investors. It is better to enter such projects before they are publicly traded on exchanges, and it is better for investors to invest at the very start or in the midst of the first investment round, Belfort is sure. It is true that in most of these cases, investors can lose money, so they must be prepared to lose.
Belfort believes that bitcoin is now behaving like a technology stock, correlating with the Nasdaq index. However, investments by institutional investors in the first cryptocurrency cannot yet be called large-scale, since bitcoin is still in its infancy. For an extensive influx of institutional money into the crypto-currency sector, well-designed regulation of crypto-assets is necessary. It will reduce the use of digital currencies for illegal purposes and reduce the number of fraudulent cases.
MicroStrategy CEO Michael Saylor also supports long-term investment in bitcoin. He is convinced that they will bring much more profit than buying shares of technology companies in the early stages of their development.
