CNBC’s Jim Cramer said on Tuesday that he believes cryptocurrencies like Bitcoin and Ethereum serve different functions in a portfolio than gold. “At the end of the day, I believe in both gold and crypto,” said the Mad Money host. According to Cramer, those who want “insurance” can buy gold, those who want to speculate can buy Bitcoin or ETH.
CNBC’s Jim Cramer suggested on Tuesday that he believes cryptocurrencies such as Bitcoin and ETH have different functions than gold in a portfolio and that investors can be exposed to both. Gold or Bitcoin advocates often want to turn their own assets into long-term stores of value to hedge against inflation and irresponsible government spending. However, he said that the conjunction “or” should not be used when talking about gold and BTC.
“At the end of the day, I believe in both gold and crypto,” Cramer said, adding that he “sees absolutely no reason to see these two things as somehow equivalent.” Cramer said that gold has scarcity value and has proven its worth over time. “I see gold as an insurance policy against long-term inflation; boring but absolutely necessary,” he said.
Bitcoin and Ethereum “created ridiculous amounts of wealth”
Cramer said that Bitcoin and Ethereum have created “ridiculous fortunes” in recent years, but they are only just beginning to form and can be very volatile as a result. As those in the cryptocurrency space know, Bitcoin was created in 2009 and the Ethereum Blockchain, where ETH is the native cryptocurrency, was created in 2013. Cramer said he sees both as more of a “speculative trade” and added:
Maybe when crypto rises it will be a store of value, but when it falls it is seen as a big mistake. That’s not what I’m looking for in an insurance policy. You don’t speculate with insurance. If you’re willing to take the extra risk to make big gains, crypto certainly has its advantages, but it’s not about protecting yourself.
As we reported on Tokensboss.com, Cramer has previously invested in Bitcoin and ETH, the two largest cryptocurrencies in the world by market capitalization. “The value of gold is its timelessness; The value of crypto is that it is timely. You want insurance? buy gold. You want to buy BTC or ETH to speculate, but don’t mix the two.
Who is Jim Cramer?
Do you not think they are studying every crypto? https://t.co/MPmBtm6MG5— Jim Cramer (@jimcramer) September 15, 2021
James Joseph Cramer is an American television personality and host of Mad Money on CNBC. He is a former hedge fund manager and also the author and co-founder of TheStreet.com. He grew up in Wyndmoor, Pennsylvania.
- Born: February 10, 1955 (age 66 years), Wyndmoor, Pennsylvania, USA
- Length: 1.68 m
- Spouse: Lisa Cadette Detwiler (d. 2015), Karen Backfisch-Olufsen (d. 1988–2009)
- Children: Cece Cramer, Emma Cramer
- Education: Harvard University (1984), Harvard Law School (1977), Springfield Township High School, Harvard College
Check out some of Jim Cramer’s books
- Get Rich Carefully (2013)
- Getting Back to Even (2009)
- Stay Mad for Life, Get Rich, Stay Rich (2007)
- Mad Money, Watch TV, Get Rich (2006)
- Real Money, Sane Investing in an Insane World (2005)
- Confessions of a Street Addict (2002)
- You Got Screwed! Why Wall Street Tanked and How You Can Prosper (2002)
- Trading with the Enemy, Seduction and Betrayal on Jim Cramer’s Wall Street (2002)
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.