The so-called "real-life Wolf of Wall Street" Jordan Belfort gave an interview discussing Bitcoin and "its babies" as he called the alts. There have been warnings here about Tether, and he claims it is being used to keep Bitcoin from falling too low in value, by creating tether from nothing and using that to buy Bitcoin (and others). The reason to keep its price up is not to make money in Bitcoin, but to keep the excitement in the market so new alt coins can be created, and that is where they are making their money.
http://www.news.com.au/finance/money/in ... 4ff64357f2
“At this point in time the money’s been made in bitcoin already. If you’re in the crypto game right now and you’re looking to make money — the guys that are really committing the fraud — the only way to do it is, you need to issue a new currency at the bottom and ride it up.”
He told The Street that the only way to keep issuing new cryptos was to “keep bitcoin up high enough so people still believe in cryptocurrency so they create the illusion of prosperity”. “This is what I did, I’m sad to say, at Stratton,” he said.
“The days of bitcoin making money are over for the scamsters.
the only way to make money is to create a new supply of some new cryptocurrency, and then by keeping the old ones high enough people will dump even more money into the new ones and they make their money on that.
Belfort said he was “trying to wake a lot of them up”. He cited the growing concerns about controversial cryptocurrency tether, a so-called “stablecoin” which claims to hold US dollar deposits in a one-to-one ratio. Critics have alleged that tether is being created out of thin air in order to buy bitcoin, artificially inflating the price.
“They hate me right now but they’re going to love me in a few months when the crap really hits the fan, when it’s [found] out that tether doesn’t exist, or half of it’s missing, and then the FBI’s going to swoop in, SWAT teams, it’s going to be really bad stuff,” he said.
“You’re going to find out that it was even worse than I ever imagined, because that’s how these things [are] in an unregulated market — it attracts the worst people. So all these millennials, I love them, it’s not your fault, but there’s a lot of really bad people at the centre of this thing that are setting you up and you’re going to be left holding the bag. They call them ‘hodlers’.”
Belfort said it was “not just a matter of saying, if there’s not as much tether we have to subtract $US3000 out of bitcoin”. “It’s not that, it’s much worse than that,” he said. “Because what you’ll see is that they used tether to artificially support the market of bitcoin, thereby dragging more suckers into the game.
“It’s maintaining the illusion of prosperity, not allowing something to go down that should be going down, and by keeping it up they bring more people into the game.”
Also mentioned in this story about the interview (not part of the interview itself):
On Tuesday, a report by investment bank JP Morgan said there was a “fairly high risk” of the currency dropping further to $US4605. Bloomberg Intelligence commodity strategist Mike McGlone was even more bearish, saying there was a “strong gravitational pull” towards $US900, bitcoin’s average price since inception.
Dissenting voices have been silenced. BS is now a safe space.
Democracy Dies in Darkness