Jim Cramer, host of Mad Money, has some advice on how to invest in bitcoin and when it’s a good time to sell. He said, “I am a bitcoin believer,” outlining the reasons why he is sold on the cryptocurrency and why people are buying bitcoin instead of gold.
Jim Cramer’s advice on investing in Bitcoin
Jim Cramer, the host of Mad Money on CNBC, gave some advice on investing in bitcoin on Wednesday. The former hedge fund manager is also the co-founder of Thestreet.com, a financial news and literacy website.
“People don’t believe in fiat money anymore,” Cramer began. “People believe the United States prints money … But bitcoin doesn’t print bitcoin. So that’s more valuable in the same way that gold is hard to find. And gold is growing, we find, about 1% more than the year before, that is everything … so it has to do with scarcity. “
Emphasizing that “there is no scarcity of dollars,” while “there is some scarcity of gold,” he countered:
There is a total scarcity of bitcoin. If you have something that is totally scarce in an age where people fear inflation and don’t believe in government bonds and they don’t believe in governments in general, this bitcoin has allure allure.
Mad Money’s host continued, “the more people give it [bitcoin] a higher price … the more likely more people will come in. “
Treat bitcoin like stocks when making a profit
Cramer went on to say, “I sold enough bitcoin yesterday to pay my initial bet, which I would if it was a stock. I take out my base and then I let it run. He added, “I’m not going to look at bitcoin anymore. I’m okay with bitcoin until it gets all the way back to where I bought it and then I will redesign it, maybe buy it again.”
Cramer explains: “As I tell people … if you have a double, get a lot out of it. And I doubled up, so I got a lot out of it. It’s just no different from a stock I had a doppelganger on, except for the fact that this thing [bitcoin] doubled while I was gone and that’s too fast for me. He confirmed, ‘So now I don’t have to worry. Play with the money from the house. See what happens,’ explains:
I consider bitcoin a precious asset.
Buy Bitcoin as insurance, compare Bitcoin with gold
Cramer views bitcoin and gold as insurance, such as against inflation, as he did before explained. “I think you need such insurance,” he said of the two assets. However, the Mad Money host commented, “I didn’t expect that insurance to make me so much money. Insurance is usually not something that generates a lot of money. “
A Twitter user asked him last week, “Are you surprised that gold has stopped rising after this week? It seems everything that’s going on should have been bullish for gold. Cramer replied, “Either it’s not that chaotic out there so gold doesn’t jump or it all goes to cryptocurrency. But remember, there hasn’t been a flight to quality (treasures).” Except he said, “I’m a gold believer. Cramer said on Thestreet:
I am a bitcoin believer … I feel like bitcoin is doing what gold used to do right now. What’s interesting is that there is a great scarcity of gold, but it just isn’t working the way it should because I think people are buying bitcoin.
What do you think of Jim Cramer’s bitcoin investment strategy? Let us know in the comments below.
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