The American TV personality Jim Cramer argued that cryptocurrencies have a long-term value as they are decentralized assets that could go mainstream in the future. However, he recommended investors interact mainly with Bitcoin and Ethereum as they have captured the attention of broad society and “seem 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, predominantly in Bitcoin and Ethereum. The two largest cryptocurrencies by market capitalization have been embraced by many investors and seem to have the biggest merits, he opined.
Additionally, Ethereum has a huge presence in the non-fungible token niche, and as such, Cramer had to purchase some amounts to conduct an NFT order:
“I can’t tell you not to own crypto. I own Ethereum. They wouldn’t let me do dollars. I had to buy it in Ethereum, so I researched it, and it’s got some qualities I like.”
Despite his positive opinion, he thinks cryptocurrencies should not account for more than 5% of one’s portfolio. They could be a speculative investment, and numerous investors use their price swings to generate profits.
Subsequently, Cramer advised individuals never to borrow money to enter the crypto market as the asset class is significantly different than the majority of products:
“Borrow for your house, borrow for your car — but don’t borrow for crypto. Don’t put it in the Procter & Gamble class. It’s not Coca-Cola, it’s not Apple.”
His Previous Crypto Visions
Cramer has been quite indecisive 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 since, previously, Cramer positioned himself as a true proponent of the precious metal while also calling BTC an “outlaw currency.”
A month later, the digital asset’s price plunged significantly, and the American used the opportunity to increase his crypto holdings. He explained his position was “not a big one” but “certainly important to diversify.”
In April last year, Cramer doubled down on his bullish viewpoint, saying he wanted to receive his salary in bitcoin. “I think it’s a strong hold of value,” he claimed back then.
Nonetheless, several months later, he made a U-turn, maintaining that the cryptocurrency sector is full of “greater fools.” He also explained he had not invested some of his wealth into the market because of inflationary reasons. Instead, he was “simply gambling.”