Mad Money’s Jim Cramer Invests In Crypto Because “There Could Be Millions Of Bigger Fools” – Bitcoin Planet Markets & Prices

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Mad Money host Jim Cramer has some tips for crypto investors. “As long as you recognize the very real possibility that the whole investment case for crypto rests on the Biggest Fool theory, you have my blessing to speculate on this,” he said. Cramer added that he holds ether because he thinks “there could be millions of bigger fools.”

Jim Cramer’s crypto investing tips

CNBC Mad Money host Jim Cramer spoke about investing in crypto on 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 Biggest Fool theory, you have my blessing to speculate on this.

The Biggest Fool theory states that the price of an asset is determined by whether it can be sold for a higher price at a later time. The theory refers to the idea that you can make money by buying an asset because there is someone who is ultimately 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 been criticized a lot for acknowledging it.” However, he pointed out:

Ultimately, I’ve said many times that you can use bitcoin or ethereum as an inflation hedge, up to 5% of your savings, as a replacement for gold.

In August, the host of Mad Money recommended placing up to 5% of wallets in cryptocurrencies, saying he believed in crypto. He said in March that gold had let him down.

Cramer added, “I didn’t buy bitcoin or ethereum as inflation insurance. In all honesty, I was playing. I was just betting on crowd psychology, though, and have no idea why these things have gone up except that there are a lot of over-enthusiastic people out there who want to buy high and sell higher. He elaborated:

I’m holding on to my Ethereum because I believe there might be millions of bigger fools out there. I think it’s a decent bet.

He continued, “I have no particular attachment to Ethereum and will end up ringing the register on the rest of my position when I think it’s over going higher.”

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

In June, Cramer revealed that he had sold almost all of his bitcoin after the Chinese government repeated its crackdown on crypto. That same month, he said he put money into ETH, noting, “I like Ethereum because people use it a lot more so they can buy things.” In September, the host of Mad Money pleaded with crypto investors to profit if they had any crypto gains due to concerns over Evergrande and Tether.

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

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