jim cramer cryptocurrency

Mad Money’s Jim Cramer Invests in Crypto Because ‘There Could Be Millions of Greater Fools Out There’

31/10/2021 by Idelto Editor

The host of Mad Money, Jim Cramer, has some advice for crypto investors. “As long as you recognize the very real possibility that the whole investment case for crypto rests on the greater fool theory, you’ve got my blessing to speculate on it,” he said. Cramer added that he is holding ether because he believes “there could be millions of greater fools out there.”

Jim Cramer’s Crypto Investing Advice

The host of the Mad Money show on CNBC, Jim Cramer, talked about crypto investing Thursday. The former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website, said:

As long as you recognize the very real possibility that the whole investment case for crypto rests on the greater fool theory, you’ve got my blessing to speculate on it.

The greater fool theory states that the price of an asset is determined by whether you can sell it for a higher price at a later point in time. The theory refers to the idea that you can make money purchasing an asset because there is someone out there who eventually is willing to buy it from you at a higher price.

Cramer added, “I know a lot of people say ridiculous things about crypto, and I’ve caught a lot of flack for acknowledging that.” However, he emphasized:

At the end of the day, I’ve said repeatedly that you can use bitcoin or ethereum as a hedge against inflation, up to 5% of your savings, as a replacement for gold.

In August, the Mad Money host recommended putting up to 5% of portfolios in cryptocurrencies, stating that he is a believer in crypto. He said in March that gold let him down.

Cramer further shared: “I didn’t buy bitcoin or ethereum as inflation insurance. In all honesty, I was gambling. I was simply gambling on crowd psychology, though, and I have no idea whatsoever why these things went up, except that there are a lot of overenthusiastic people who want to buy high and sell higher.” He elaborated:

I’m holding onto my ethereum because I believe there could be millions of greater fools out there. I think that’s a decent bet.

He continued: “I don’t have any particular attachment to ethereum and eventually I’ll ring the register on the rest of my position when I think it’s done going higher.”

The price of ether hit an all-time high on Friday. At the time of writing, ETH stands at $4,274. It was down 3.5% in the past 24 hours but up 7% in the past seven days and almost 50% in the last 30 days.

In June, Cramer revealed that he sold almost all of his bitcoin after the Chinese government reiterated its crypto crackdown. In the same month, he said he put money in ETH, noting: “I like ethereum because people actually use it much more to be able to buy things.” In September, the Mad Money host begged crypto investors to take profit if they had any crypto gains due to concerns over Evergrande and Tether.

What do you think about Jim Cramer’s comments? Let us know in the comments section below.

Mad Money’s Jim Cramer Says Gold Let Him Down, Put 5% in Bitcoin

23/03/2021 by Idelto Editor

Mad Money host Jim Cramer, a long-term gold proponent, says that gold has let him down. He has become more bullish on bitcoin, advising investors to put 5% of their portfolios in the cryptocurrency to protect their assets.

Jim Cramer Reduces Gold Holdings, Increases Bitcoin Allocation

In an interview published Monday with Morgan Creek Digital partner Anthony Pompliano, Jim Cramer talked about his new investment strategy for bitcoin and gold. Cramer is the host of Mad Money on CNBC, a former hedge fund manager, and a co-founder of Thestreet.com, a financial news and literacy website.

Emphasizing that bitcoin is what he had been searching for with gold, Cramer opined:

I have, for years, said that you should have gold … but gold let me down. Gold is subject to too many vicissitudes. It’s subject to mining issues. It’s frankly subject to failing in many cases.

The Mad Money host became interested in bitcoin after Pompliano explained the benefits of the cryptocurrency to him in September last year. At the time, Cramer revealed that he owned “so much gold.” He became fixated with BTC in fear of massive inflation and he subsequently invested in the crypto. He explained that his investment strategy was to regard “bitcoin as a precious stock.”

Cramer was then asked if he expects other investors will dump gold and buy bitcoin in the way he described. The Mad Money host exclaimed:

If they listen to me, they’re going to drop half their gold. I’ve been saying 10% in gold since 1983. And now I say 5% in gold, 5% in bitcoin.

He clarified that he did not think about investing 5% of his portfolio in bitcoin until very recently, claiming that he has “thoroughly researched” the subject to come up with this recommendation. He admitted that he was skeptical because he had done fine with his gold but now realized that the only way to protect his assets, in terms of insurance, is with bitcoin.

Would you take Jim Cramer’s advice about bitcoin? Let us know in the comments section below.

Mad Money’s Jim Cramer Has a Plan to Save Gamestop With Bitcoin

01/03/2021 by Idelto Editor

Mad Money host Jim Cramer thinks he has a solution to save troubled video game retailer Gamestop with the help of bitcoin. He suggests that Gamestop should raise money to buy the cryptocurrency, then convert its 5,000 locations into bitcoin stores. He believes his idea will work.

Jim Cramer Has Idea to Use Bitcoin to Save Gamestop

Mad Money Jim Cramer said on CNBC last week that he believes he has come up with a viable plan to help video game retailer Gamestop (GME). He said his idea will fix the company’s valuation. The Gamestop stock surged by over 100% last week after the company announced that its CFO Jim Bell would resign.

His idea is for Gamestop to “become a dealer in crypto.” He noted that it is what Square and Paypal are doing, which he initially thought “seemed ridiculous” but then it “was ok.” Cramer is the host of Mad Money on CNBC and a former hedge fund manager who co-founded the financial website Thestreet.com.

Cramer also pointed out that Nvidia is coming up with graphics cards for crypto. “Last night on the unbelievably good Nvidia call, as a side note, they talked about March. [They’re] going to have some actual cards just for crypto. It really won’t be important for Nvidia, but it could be important for a place like Gamestop,” the Mad Money host described. He continued:

If Gamestop were to turn itself into a 5,000-store introduction to crypto, make it so that they sell $1 billion worth of stock … and buy crypto with it, and then make it so it’s an international gaming place where you win bitcoin, I think you can justify the stock price.

“And it doesn’t have to be bitcoin. We can make it crypto,” he clarified. “But turn it into a crypto information palace and you have worldwide games, no latency, you play it.”

He tweeted telling Gamestop board member Ryan Cohen to tell “the board to sell 10 million shares of Gamestop at $200 and buy bitcoin and say Gamestop is now a bitcoin store that also sells games.”

Cramer has floated the idea of turning Gamestop stores into a bitcoin empire before. On Feb. 5, he tweeted:

Gamestop needs to be a 5,000 store bitcoin palace. I cannot believe how brilliant that would be … They can sell stock, buy a ton of bitcoin and just hold on. Call it Bitstop. Or Gamecoin.

“I have not been able to come up with anything else, but this works,” he concluded. “I have a feeling that this is the way to get this stock higher. I can’t come up with another way.”

Do you think Jim Cramer’s idea will be good for Gamestop? Let us know in the comments section below.

Mad Money’s Jim Cramer ‘Fixated’ on Buying Bitcoin, Fears Massive Inflation

15/09/2020 by Idelto Editor

Jim Cramer, the Mad Money host and The Street co-founder, said he is “fixated” on needing to own bitcoin because he fears a “massive amount of inflation.” While he owns “so much gold,” he is adamant about leaving a bitcoin inheritance to his children.

Jim Cramer to Regularly Buy Bitcoin

Jim Cramer is the host of Mad Money on CNBC, a former hedge fund manager, and a co-founder of Thestreet.com, a financial news and literacy website. During a podcast interview with Morgan Creek Digital partner Anthony Pompliano (Pomp), published Monday, Cramer asked many questions about cryptocurrency, particularly bitcoin. The Mad Money host said he has been following stock trader Dave Portnoy very closely. Portnoy recently bought bitcoin but exited the crypto market within a week after the price of chainlink, another of his crypto investments, fell.

Cramer calls himself a gold bug because he has “so much gold,” he revealed. He is concerned about hedging against inflation and leaving the right assets to his kids. The former hedge fund manager explained that to hedge against inflation, he currently goes to his “inflation handbook,” and “what it says is buy gold, buy masterpieces and buy mansions. Those are the three things.” He emphasized that “what we didn’t have in that menu was crypto and I think that you have to have [it].” He further opined: “I feel very strongly that I have missed crypto.”

Pomp clarified to Cramer that it is important to distinguish between bitcoin and cryptocurrencies. “When you talk to your kids about it, you got to make sure it’s bitcoin not just crypto in general because bitcoin specifically has the inflation hedge – things that we’re talking about here.”

Cramer believes:

My kids, when they get my inheritance, won’t feel comfortable with gold and will feel comfortable with crypto.

“I just need something that my kids will understand … and they will never understand gold and the reason why they’ll never understand gold is they think gold’s dangerous. It’s dangerous because it can be stolen. It’s dangerous because they don’t want to take it out of the bank,” Cramer shared. As for cryptocurrency, the Mad Money host is also concerned about the security side, such as getting hacked. However, Pomp explained several ways to keep his bitcoin more secure.

Cramer admitted that when people asked him about bitcoin in the past, he said to them that he does not trade coffee, cotton, and bitcoin. “That sufficed for a very long time. It worked until the three trillion dollar [Fed] package because we don’t have that. We don’t have three trillion in this country. You can raise them you make the rich pay as much as you want. This is the first time in my life, and I’ve said it publicly, that I know we don’t have the money and that’s one of the reasons why I like gold so much.” However, he agrees with Pomp that the upside of bitcoin beats gold.

Recently, the Federal Reserve has made a major policy shift to push up inflation. This has prompted some companies to move cash reserves into bitcoin, such as the Nasdaq-listed Microstrategy which recently bought a total of $425 million in bitcoin in order to hedge against inflation. Meanwhile, some people strongly believe that bitcoin beats gold in every way.

The co-founder of The Street exclaimed:

I am fixated on needing to own crypto because I fear massive amount of inflation.

Pomp proceeded to explain how Cramer could buy and hold bitcoin. For example, to get some exposure, he could buy Grayscale Investments’ GBTC, but there are premiums. Alternatively, he could buy bitcoin itself and either use the custody service of a reputable company or store it himself. He asked about JPMorgan, which Pomp believes will one day offer the same crypto service Fidelity does. Cramer says he has some funds at Fidelity so it is likely the place he will go and buy bitcoin, mentioning that he could be doing dollar-cost averaging. Cramer says that he is not worried about the price fluctuation of bitcoin since it will be part of his portfolio as an alternative asset for hedging purposes.

What do you think about Jim Cramer wanting to buy bitcoin? Let us know in the comments section below.

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