Beware of Bitcoin, Part 2

This article from CNBC is entitled, “‘Wolf of Wall Street’ warns investors of the next big trap: Bitcoin.” From the article:

“In the internet age, that manipulation tactic has become easier. Cryptocurrency fundraising known as initial coin offerings [ICOs] in many cases turned out to be frauds and have become the target of Securities and Exchange Commission investigations. Google, Facebook, and Twitter have outlawed advertising of ICOs on their platforms.

‘This thing is going to evaporate like a mirage,’ [Jordan] Belfort said. ‘There’s a lot of really honest people who are going to get slaughtered.’ He predicted that it could go bust within the year, and when it does, it will be ‘the bust heard around the world.’ Belfort also challenged bitcoin’s security, the idea that it could dissolve a need for central banks, and the argument that governments would allow an anonymous currency without regulation.”

If it sounds too good to be true, then it is. If you don’t understand something, don’t invest in it.