Piers Morgan: Bitcoin Traders Are "Mugs"

Thu, 02/08/2024 - 20:20
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Superstar journalist Piers Morgan, alongside his guest Jordan Belfort, famously known as the "Wolf of Wall Street," touched upon the volatile world of cryptocurrency trading in the recent episode of Piers Morgan Uncensored. 

Morgan labeled Bitcoin traders as "mugs" while questioning the viability of the cryptocurrency:  

"Isn't it a case if there's enough mugs out there, they all trade it with each other, it will go up," the superstar journalist pondered.  

Belfort tempered this notion by acknowledging that today's Bitcoin traders include "some really smart mugs." He implied that there has been a shift towards a more sophisticated investor demographic engaging with Bitcoin. 

This shift, according to Belfort, lends a degree of legitimacy to Bitcoin that was previously absent. 

From a skeptic to an enthusiast  

As reported by U.Today, Belfort changed his mind on Bitcoin in 2021 after predicting the cryptocurrency's collapse back in 2017.  

The notorious investor has noted that Bitcoin's inherent value is bolstered by its finite supply. 

He admitted that while Bitcoin's initial days were marred by associations with illicit activities, its narrative has shifted dramatically. 

\$50,000 Remains Key Level for Bitcoin: Trader

Today, Bitcoin attracts sophisticated investors, including those through ETFs, and this marks a significant evolution in its acceptance and legitimacy.

However, he cautioned against the broader cryptocurrency market, likening many altcoins to the infamous penny stocks of the past, designed to "separate others from their money."

S&P 500 over speculation 

Belfort shared his seasoned perspective on investment, cautioning viewers against the deceptive allure of speculation. 

Drawing an analogy to gambling in a casino, he described the market as an even more treacherous environment, dubbing it a "corrupt casino" with odds dramatically stacked against the individual investor.

"The playing field is dramatically tipped against you," Belfort explained, emphasizing the inherent risks and systemic corruption that plague the market. 

Insider trading, high-frequency trading, and preferential treatment for large investors create a landscape where the average trader is at a significant disadvantage.

Despite these challenges, Belfort advocated for a more measured approach to investing, suggesting the S&P 500 as a safer and more reliable vehicle for wealth accumulation. "You extract the value by investing in the S&P 500," he advised, pointing to its strategy of constantly updating its roster of companies to include only the best performers.