Cryptheory: NFT, Play-to-Earn, Crypto News

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

Wolf of Wall Street – Whoever accumulates BTC in the next three years will do well

3 min read

 

Jordan Belfort, a trader known as the “Wolf of Wall Street”, has championed long-term investment in BTC (BTC). According to the famous trader, he will be “shocked” if the medium-term hold of BTC does not turn out to be a profitable investment.

In this sense, Belfort places the long term as a time horizon between three and five years. At the same time, he advised investors to look at BTC in this timeframe, ignoring fluctuations smaller than this timeframe.

“If you take a horizon of three, or maybe five years, I would be shocked if you didn’t make money, because the underlying fundamentals of BTC are really strong,” Belfort said.

And indeed investors always stress the long-term track record when it comes to BTC. In the last three years, for example, those who bought the cryptocurrency made a profit of 110% even with the drop of more than 70% recorded in 2022.

BTC's positive performance over the past three years.  Source.  CoinMarketCap.

Positive performance of BTC in the last three years. Source. CoinMarketCap.

Change of posture

Interestingly, Belfort is not exactly an example of long-term investment, as his figure is usually associated with that of a speculator. In addition, the former trader and now plaintiff received several charges of money laundering and small business IPO fraud.

Even with this track record, the Wolf of Wall Street has become known in the cryptosphere for his “warnings” about BTC risks. In 2018, he opined that BTC is based on the Most Foolish Theory, i.e. that BTC only had value because there was always “someone more foolish” to buy, and investors should get out of this market before losing all their money. .

Eventually, though, Belfort totally changed his stance and started to speak out in favor of BTC. In his latest “forecast,” Belfort said that BTC would reach $100,000 in 2021. Despite the strong bullish rally that year, the prediction did not materialize.

Belfort’s main praise concerns the BTC supply, which is limited to 21 million coins. In his view, as inflation continues to rise in the world, the market will see BTC as a store of value and not a risky asset.

In this regard, Belfort opined that BTC is still in its early days, which is why it is normal for the crypto asset to have a strong correlation with tech stocks, rather than getting closer to the volatility of gold, for example.

“There is no real institutional ownership in BTC, for example. You do not have a teacher pension fund that you have BTC for a ten-year hedge, this is not yet the case,” he added.

New alerts

If Belfort has changed his view on BTC, he still warns of the risks of scams in cryptocurrencies as a whole. That’s why the ex-trader also gave tips on how people can protect themselves from scams applied in this market.

Compared to traditional finance, the digital asset industry lacks comprehensive rules, which explains why sometimes “people are getting slaughtered”.

“In cryptocurrency, you can go out and withdraw money, but there is no disclosure, and every time there is no disclosure, it always ends badly,” he said.

Belfort used the term disclosure, which refers to a set of documents that companies need to make available to the market before issuing shares. Therefore, the investor defends the existence of clearer and safer rules for cryptocurrencies.

He advised investors to be careful when dealing with a given project and to get acquainted with his team of executives. Belfort believes that a protocol with unknown owners should be considered a major concern.

Finally, he urged people to check the usefulness of the projects they want to invest in. If the idea behind a particular company works better from a centralized server than cryptocurrencies, “I probably wouldn’t get involved,” concluded Belfort.

NFT overview – Meta starts testing support for NFTs on Facebook…

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

24 thoughts on “Wolf of Wall Street – Whoever accumulates BTC in the next three years will do well

Leave a Reply

Your email address will not be published.