Former stockbroker Jordan Belfort commented on Bitcoin. Belfort likened cryptocurrencies with low market caps to small stocks due to their extreme price fluctuations. Undervalued stocks refer to highly speculative stocks of small and unknown companies priced below $1. In general, it either delivers big returns for investors, or it crashes dramatically.

Former stockbroker Jordan Belfort, known as the “Wall Street Wolf”, rose to prominence in the 90s and faced the Securities and Exchange Commission (SEC) in part because he made brokerage deals for these stocks.

In an interview with Yahoo Finance, Belfort stated that such investments have “the same predictable cycle,” which can yield huge returns, but can hurt investors who can't cash out at the right time. Belfort stated that cryptocurrencies with a low market value should never fall into a serious investment category and that it would be right for investors to allocate only a small part of their portfolio to these cryptocurrencies.

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However, the Wall Street Wolf said that he primarily considers Bitcoin and Ethereum as long-term investments due to their strong fundamentals. He underlined that he is particularly interested in Bitcoin due to its potential as a store of value and an anti-inflation tool when the market becomes more mature in the future. The former stockbroker stated that once in the right hands and in a limited case of short, there will be enough maturity in Bitcoin and it will be traded more like an increasing stock.

Belfort has joined the ranks of Shark Tank investors such as Mark Cuban and Kevin O'Leary, becoming one of many popular names that have made a 180-degree turn in crypto over the past few years. In February 2018, the former stockbroker predicted that the price of Bitcoin would eventually fall to zero, describing the asset as “the perfect storm for manipulation” due to market weakness at the time. Belfort also questioned the use of Bitcoin for payment rather than just an investment vehicle and suggested that the asset would be regulated.

Referring to the change in his thoughts, Belfort stated that he was “wrong” about Bitcoin going to zero. While the Wall Street Wolf stands behind most of his criticisms, he said he changed his mind after the growing adoption of Bitcoin and crypto and the realization that the industry would not be banned completely.