фото показано с : zycrypto.com

Jim Cramer admits says his attempts into Bitcoin was “simply gambling” and not for inflation insurance.He comments that there is nothing wrong with investors leaping into the space as long as they understand all the risks that are associated with the asset class.He is a proponent of the greater fool theory and believes that the theory can be applied to cryptocurrencies.

CNBC’s Jim Cramer has shared his opinions on Bitcoin and Ethereum investing, giving investors his blessing to speculate on the asset class. He cites the presence of millions of greater fools as the reason for holding onto his crypto assets.

Jim Cramer has given the nod to investors buying into cryptocurrencies as far as they understand the inherent risks involved in them. The Mad Money host goes on to state that the entire industry is hinged on the greater fools theory which posits that an investor can notch a profit from the purchase of an asset so far as there exists another person to buy it at a higher price.

“As long as you recognize the very real possibility that the whole investment case for crypto rests in the greater fool theory, you’ve got my blessing to speculate on it,” Cramer said. He adds that the entire strategy tears at the seams when “no greater fools” remain to repurchase the asset from the investor.

Asides from being used as a speculation vehicle, Cramer believes that cryptocurrencies can also serve as a hedge against inflation. “I know a lot of people say ridiculous things about crypto – and I’ve caught a lot of flack for acknowledging that – but at the end of the day I’ve said repeatedly that you can use bitcoin or Ethereum as a hedge against inflation,” he said.

“I didn’t buy Bitcoin or Ethereum as inflation insurance. In all honesty, I was gambling,” Cramer revealed. His entry into the market was driven by crowd psychology and the TV host was lured by the overenthusiasm of other investors. He revealed that he is still holding on to his ETH because he believes that there could be ‘millions of greater fools out there.”

In September, during the wake of the Evergrande saga, Cramer issued a warning to cryptocurrency investors that have made a bit of gain to take some of their profits. He said “don’t let it become a loss. Sell some, stay long the rest, then let’s wait and see if China changes its attitude toward an Evergrande bailout.”

He cited that the crisis could have a negative ripple effect for Tether despite the fact that the stablecoin issuer has no Evergrande exposure. This is because of the stablecoin’s backing with commercial paper that may or may not be Chinese commercial paper.

Cramer also advises investors to consider putting 5% of their savings in cryptocurrencies and another 5% in gold.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

188 +