CNBCs Jim Cramer Says Fortunes Have Been Made From Speculating on Crypto

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On Wednesday (June 8), former hedge fund manager Jim Cramer shared his latest thoughts on crypto and in particular how it should be viewed by investors.

Cramer is the host of CNBC show Mad Money w/ Jim Cramer. He is also a co-anchor of CNBC’s Squawk on the Street, as well as a co-founder of financial news websiteTheStreet.

Cramer told CNBC’s Make It:

If youre a young person and youre thinking about crypto, I think its smart.

I think crypto should be part of a persons diversified portfolio. I can’t tell you not to own crypto. I own crypto: I own Ethereum. Why did I buy Ethereum? Because I was in a bidding auction for charity to buy what was known as an NFT, and they wouldn’t let me do dollars. I had to buy it in Ethereum.

So I researched it, and I said, well, you know, got some qualities I like scarcity, value not as hot, so to speak, as Bitcoin. So, I bought it. These are hope securities. Now I dont like hope. I think you should not ever invest on hope, but these are speculative, and one of the things that I teach in my classrooms is its okay to own something thats speculative.

You must admit that its speculative. So, you dont put it in the Procter & Gamble class, [its] not Coca-Cola, its not Apple, but I suggest and accept speculation. Now, when I started Mad Money, I said, I think you should own a spec and I think you should own a gold stock.

And ever since crypto came along, I have said that instead of, say, 10% being gold, 5% should be gold and 5% should be crypto. What do I think is the value of crypto? I have no idea. Heres what I know youre thinking, though. Youre thinking I have seen fortunes made in crypto and I want a shot at making a fortune.

And unlike many of the so-called graybeards who come on TV, I agree with you. You have every right to try to make some money in crypto. I would prefer that you would do it in Ethereum or Bitcoin, which have the largest following, seem like theyre the most legitimate. I would be careful not to borrow money as many people do own these because these are speculative

Bitcoin can’t live your house. Its not a mortgage. Its a piece of paper, or in this case, its not even a piece of paper. So, I don’t want any borrowing. Borrow for your house, borrow for your car, but dont borrow for crypto, but I would never discourage you from buying crypto because of all the fortunes that have been made and how it could make a whole new group of people fortunes. Id like that to be you.

Heres how Cramer got into crypto.

On September 10, 2020, Anthony Pompliano (aka Pomp), who is the host of The Pomp Podcast, told his almost 370K followers on Twitter that he had managed to convince Cramer to buy some Bitcoin (apparently during a recent podcast interview with Cramer).

Just convinced @jimcramer to buy Bitcoin.

Reply to this tweet with your best meme or gif to welcome the worlds newest Bitcoiner

Pomp (@APompliano) September 10, 2020

Then on 11 December 2020, CramertoldKatherine Ross, a correspond for TheStreet, that he had just bought more Bitcoin.

Three months later, during a second interview appearance on Pomps podcast, Cramer said that he had made a ton of money from his Bitcoin investment, expressed his disappointment with gold, and mentioned that he was advising people to have 5% of their portfolio in gold, and 5% of it in Bitcoin.

On April 15, 2021, Cramer revealed, while talking to CNBC’s Squawk on the Street co-host David Faber, that as the Bitcoin price has been going up over the past few months, he had been taking profits by selling some of his BTC holdings.

On 21 June 2021, during an appearance on CNBCs Squawk on the Street, Cramer revealed that he had sold most of his remaining Bitcoin holdings due mostly to concerns over the crypto crackdown in China and Bitcoins use for ransomeware payments.

And on June 28, 2021, Cramer said on CNBCs Squawk Box that he had added to his $ETH holdings.

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Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in gold trading cryptoassets comes with a risk of financial loss.

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