CNBC host Jim Cramer has told his Twitter followers that Bitcoin is ‘a great alternative to gold’ and reminded them that it’s not too late to buy some.
The former hedge fund manager, turned Mad Money presenter explained how he had always believed in gold, but now sees Bitcoin as a great alternative.
Cramer Hasn’t Always Been Bullish on Bitcoin
The tweet appeared to confuse some, as the gold bug had always been against Bitcoin, and had spoken against it many times.
Back when Bitcoin fell below $6,000 Cramer spoke out against the leading cryptocurrency, saying the ‘tide had turned against it’ and although he said it could bounce back ‘the sun seemed to be setting’ on Bitcoin.
Back in 2017, Cramer said the Bitcoin price could one day reach $1 million, but the gold bug wasn’t thinking about Bitcoin’s incorruptible monetary features when making such a prediction.
The outspoken CNBC frontman said a Bitcoin to USD $1 million price tag was likely because it was the best way to pay for cybercriminals and that the ‘European banks are frantically trying to buy them so they can pay off ransomware.’
And when Cramer was pressed about certain nefarious acts connected with Bitcoin, the Mad Money host said Bitcoin had become the ‘outlaw currency.’
From Gold Bug to Avid Bitcoiner
Jim Cramer was then interviewed by Anthony ‘Pomp’ Pompliano on The Pomp Podcast in September this year. In the interview, Pomp explained Bitcoin to the aging investor, and since then the Cramer has been as bullish on Bitcoin as any other Bitcoiner.
During the interview, Cramer called himself ‘a gold bug’, because he said he had so much of it. But he admitted that Bitcoin was starting to look interesting to him, even admitting that he was getting ‘fixated’ on owning some.
‘I mean people talk about like crypto gets hacked or whatever, you know what’s really bad? It’s when your kids can’t find your gold. And that is, by the way, not unusual,’ said Cramer. ‘So this is why I am fixated on needing to own crypto, because I fear a massive amount of inflation, and I don’t have [any]. Gold will do okay, the houses will do okay, those will keep me running in place. The idea of actually making money, well holy cow, I’ll take a shot at that with 1%.’
Pomp is one of the best people to explain Bitcoin, and during the interview it was clear the gold bug had been considering it, even though he had always been highly skeptical about it.
With Pomp’s ability to explain both the economic and technological side of Bitcoin, Cramer didn’t need much convincing.
The CNBC host opened up about his fears for the economy and said he had been impressed in Bitcoin’s ability to rise in value while also acting as an inflation hedge, and said it deserved a 1% allocation.
Jim Cramer Is A True Bitcoiner
Bitcoin is a great alternative to gold, and it is most definitely not too late to get some exposure.
Jim Cramer is a huge personality in the investing game, and has gone from skeptic to tweeting about it being ‘a great alternative’ to gold. And coming from such a huge gold bug, that was a big about turn.
At today’s price of $19,075 Bitcoin looks expensive, but the fact is as an asset it’s small. The market cap, which everything should be evaluated against, is relatively small at $353 billion.
The asymmetric bet for Bitcoin is like no other asset, because the upside potential is way higher than the downside. And the best thing is, the big, smart money is only just starting to trickle in now.
Bitcoin is called digital gold, but it isn’t just a great alternative to gold. Bitcoin is better than gold in almost every way.
In the digital age, a digital gold that is incorruptable, unconfiscateable, divisible, transactable, and best of all programmable, could turn out to be priceless.
*This is not investment advice, and I am personally invested in Bitcoin.
Author: Pablo Clarke
There can only ever be 21 million bitcoins. At the time of writing, there are 18,552,856 bitcoins in circulation. There are 6.25 bitcoins minted roughly every 10 minutes, so that’s 900 every day. The amount of newly minted bitcoins is cut in half roughly every 4 years, in what is known as the halvening. The halvening will continue to take place until the last fraction of Bitcoin is minted in around the year 2140.
Absolutely! Bitcoin is like other investments and currencies. If you have some money to invest, you can make more faster. You can lose more faster, as well if you don’t know what you’re doing. But if you don’t have any money to invest you can earn free bitcoins from playing games, learning about cryptocurrencies, or offering your skills for Bitcoin.
There is no CEO. There is no central authority that directs or controls Bitcoin. It was created by a pseudonymous programmer Satoshi Nakamoto, but he gave it up to the community, and now all decisions are made by the hundreds of thousands of miners and nodes who work for the Bitcoin network.
As of November 2020, Bitcoin is legal in most countries. The US, UK, Canada, Japan, and all other developed nations it is very much legal. However, the legal status of Bitcoin varies in other jurisdictions.