Jordan Belfort, the former stockbroker depicted in Martin Scorsese's dense plot, "The Wolf of Wall Street," was again referred to the press to warn of "theft" and misconduct in the Bitcoin markets and rising regulatory aversion, CNBC reports .
"Bitcoin is not a scam, but its nature allows frauds to occur," he said. "It's a dark market, you can not see what's going on behind the scenes, people dive into it and use it to snatch others."
Belfort pleaded guilty in 1999 for charges of fraud stemming from a stock scam of pumps and dumps that has been operating for years out of a company called Stratton Oakmont which has long started
At the Stratton Oakmont offices, hundreds of brokers in a boiler room incessantly urge investors by telephone with the intent to eradicate a particular stock.
Once the chosen football was sufficiently deployed, Belfort ordered a massive, coordinated sell and rake in the resulting profits.
The same behavior, he says, is present in the Bitcoin markets, which could lead to Bitcoin's death within a year.
"This thing is about to evaporate like a mirage," said Belfort. "There are many honest people who will be slaughtered … (in a) bust heard all over the world."
Perhaps erroneously, Belfort believes that the anonymity of Bitcoin gives him the perfect profile to be manipulated by shadows.
And although manipulation is an undeniable feature of the Bitcoin and alt-currency markets, Bitcoin has never been completely anonymous unless special measures such as "tumbling" are undertaken. (Bitcoin's tumbling services allow people to group their bitcoins with others where they are "mixed" and then returned in equal amounts.)
Indeed, the Bitcoin registry can be inspected, albeit at considerable cost. . People like Ross Ulbricht of Silk Road were judicially monitored through Bitcoin transactions.
Bitcoin has also proven its usefulness not only between shady dealers and black marks but has also been used by individuals who hope to unjustly control capital controls of one kind or another and by people who live in hyperinflationary economies like Iran, Venezuela, Zimbabwe and Turkey.
Economists such as Ammous of Saifedean have also pointed out that the deflationary structure of Bitcoin (limited supply) theoretically promotes savings in economies in which abundant and inexpensive capital has promoted short-sighted and imprudent spending behavior
Meanwhile, while the public interest in Bitcoin has increased, it has become a less attractive place to conduct criminal proceedings.
In addition to the transparent registry, the KYC / AML procedures (you know your client / anti-money laundering) are closing down on exchanges and a number of expressly anonymous coins such as Monero and ZCash may exceed Bitcoin as a shadow of choice if they manage to get enough liquidity.
In addition, ICOs have proven to be the preferred trampling ground for pumping and discharging permanently.
What could surely influence the valuation (but not necessarily the value) of Bitcoin is the fact that some markets that were very large for trading earlier, including China, are currently falling heavily on Bitcoin and cryptocurrencies. Many scams have given these schemes a broad excuse.
If the possession of Bitcoin becomes a flat crime in many places, the network could still have utility and appeal, but the price of the currency may not increase profitably because of the fears of good citizens
The bitcoin could then become a matter of principle for the freer and less profitable mind than before.
As Belfort does what might be considered his round of penitence, he sees no reason why authorities would be kind to "a peer-to-peer electronic payment system" with the audacity to move around without Authorization of the authorities.
"Central banks do not want it, they spent all this time trying to stop money laundering, why now allow something that … lends itself to making money laundering easy?" Said Belfort. "I do not believe there have been any shots in the world that will let that happen."
Wolf of Wall Street says that Bitcoin will break out from CNBC.