American TV personality Jim Cramer argued that cryptocurrencies have long-term value because they are decentralized assets that may go mainstream in the future. However, he advises investors to interact with bitcoin and ethereum primarily because they have attracted the attention of the wider society and “seem to be the most legitimate.”
Cramer’s Latest Crypto Advice
In a recent interview, the host of CNBC’s Mad Money show – Jim Cramer – described himself as a “believer” of digital assets, primarily in bitcoin and ethereum. The two largest cryptocurrencies by market capitalization have been adopted by many investors and seem to have the biggest advantages, he said.
Additionally, Ethereum has a large presence in the non-fungible token niche, and as such, Cramer had to buy certain amounts of NFT orders:
“I can’t tell you not to own crypto. I own Ethereum. They won’t let me do dollars. I had to buy it in Ethereum, so I researched it, and it has some qualities that I love.” “
Despite his positive opinion, he believes that cryptocurrencies should not account for more than 5% of one’s portfolio. They can be a speculative investment, and many investors use their price swings to generate profits.
Subsequently, Cramer advised individuals to never borrow money to enter the crypto market as the asset class is quite different from most products:
“Borrow for your house, borrow for your car – but don’t borrow for crypto. Don’t put it in Procter & Gamble class. It’s not Coca-Cola, it’s not Apple.”
His previous crypto vision
Cramer has been quite unsure on his crypto stance during the past few years. In November 2020, he described bitcoin as a “great alternative” to gold. The statement came as a surprise because, previously, Cramer had positioned himself as a true proponent of the precious metal, while also calling BTC an “illegal currency.”
A month later, the price of the digital asset dropped significantly, and Americans used the opportunity to increase their crypto holdings. He explained that his position is “not huge” but “definitely important for diversity.”
In April last year, Cramer doubled down on his bullish outlook, saying that he wanted to get his salary in bitcoin. “I think it’s a strong hold of the value,” he claimed at the time.
Nonetheless, several months later, he made a U-turn, saying that the cryptocurrency sector is full of “more idiots”. He also pointed out that he had not invested some of his wealth in the market due to inflationary reasons. Instead, he was “just gambling”.
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