Jim Cramer urges investors to choose gold over crypto

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Over the past two weeks, the cryptocurrency industry has made a comeback with its magnetic recovery. The ongoing rally led by Bitcoin [BTC], made the community believe that the bull market prevails. However, despite Bitcoin advancing above $23,000, there were plenty of naysayers. This also included CNBC host Jim Cramer.

In a recent episode of Mad Money, Cramer urged investors to look into gold rather than cryptocurrency.

JUST IN: Jim Cramer warns investors to stay away from #crypto and stick to gold.

— Watcher.Guru (@WatcherGuru) January 24, 2023

Elaborating on the same, Cramer said:

“The charts, as interpreted by Carley Garner, suggest you should ignore the crypto cheerleaders now that bitcoin is bouncing back. And if you’re serious about a real hedge against inflation or economic chaos, she says you should stick with gold. And I agree.”

Cramer then used a chart from Carley Garner of DeCarley Trading. The daily chart of Bitcoin and Nasdaq-100 futures contracts was presented. The chart included data dating back to March 2021, when the two indices could be seen moving in close proximity to each other. As a result, Cramer opined that Bitcoin is neither a form of currency nor even a secure store of value, but rather a risky asset.

Source

Digging deeper into Bitcoin’s volatility, Cramer said,

“Imagine business owners trying to trade Facebook or Google stocks…it’s ridiculous, they’re too volatile. Bitcoin is no different.

On the contrary, Bitcoin’s volatility has been quite low over the past couple of days. The price of the asset, on the other hand, was trading at $23,046.59 at press time.

Bitcoin and the resulting “counterparty risk”

According to Cramer, “counterparty risk” is the possibility that the other party to an investment or transaction will fail to meet their half of the bargain. Therefore, he believes that the assets in the market are trading tightly.

But, there was a way to avoid this counterparty risk. Cramer added,

“Of course, you can just own Bitcoin directly in a decentralized wallet – which protects you from counterparty risk – but if you ever want to use it for anything, risk is back on the table. And as FTX customers have learned, it can be devastating. On the other hand, gold, well, it’s the opposite.

It should be noted that this is not the first time that Cramer has tried to alienate the cryptocurrency community. Back when Bitcoin hit $17,000, the CNBC host told his viewers that it was a great exit opportunity. Consequently, Cramer’s recent comments have also been met with backlash.

Dogecoin co-founder Billy Markus was visibly furious.

I never understand why all these morons in finance think one dumb thing is better than another dumb thing.

they’re all dumb, finance is dumb, get back together, play whatever dumb thing you want

— Shibetoshi Nakamoto (@BillyM2k) January 24, 2023

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