Jordan Belfort, the disgraced stock trader whose book inspired Martin Scorsese’s blockbuster ‘Wolf of Wall Street’, has labeled Bitcoin a “huge danger”.

The crypto currency has been rising in value over the past decade, and unexpectedly soared to over £12,000 in the last few weeks.

As a truly decentralised currency, Bitcoin is liable to surges in value – as well as quick downturns.

And in an interview with the Financial Times, Belfort said the 'initial coin offerings' are a 'huge gigantic scam that's going to blow up in so many people's faces'.

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Jordan Belfort, the real @wolfofwallst, knows a thing or two about financial risks. He says Bitcoin is now a "huge danger" https://t.co/Rzt0OeJ1qu — Quest Means Business (@questCNN) December 11, 2017

He labels it “far worse than anything I was ever doing", and believes that, “probably 85 per cent of people out there don't have bad intentions, but the problem is, if five per cent or 10 per cent are trying to scam you, it's a fucking disaster."

Increased interest around Bitcoin means that many people will look to invest, but the lack of security around the buying and holding of the currency could prove risky to newcomers.

He added: "Everyone and their grandmother wants to jump in right now. I'm not saying there's something with the idea of cryptocurrencies, or even tulip bulbs. It's the people who will then get involved and bastardise the idea."

Belfort knows a thing or two about scams – it might just be worth listening to him on this one.

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