- Jim Cramer might invest one percent of his net worth in Bitcoin
- Billionaire investors and multi-billion dollar public companies are not considering opening long positions in Bitcoin
- Cramer said Bitcoin is dangerous, which is why Bitcoin is more attractive
Bitcoin News Today – Jim Cramer – the host of CNBC Mad Money plans to invest one percent of his net worth in Bitcoin because “gold is dangerous.” The famous investor drew comparisons between gold and Bitcoin, stating the importance of hedging against inflation. In a podcast with Anthony Pompliano, the CNBC Mad Host said he would “take a shot at that one percent.”
Since Bitcoin surged to its all-time high in 2017, Bloomberg, CNBC, and institutional analysts have been very critical of the digital currency. Many said that digital currencies were scams, Ponzi schemes, or unstainable. However, this narrative took a different direction in April 2019 when the digital currency recovered from the lows of $4k.
Bitcoin (BTC) Price Today – BTC / USD
Jim Cramer Might Invest 1% of His Network in Bitcoin
Many investors see safe-haven assets such as gold as a great hedge against inflation. However, they do not invest in such assets expecting huge returns. In the podcast, Cramer said he is attracted to BTC because of its demonstrated ability to surge in value while also acting as a hedge against inflation. He said:
“I mean people talk about like crypto gets hacked or whatever, you know what’s really bad? It’s when your kids can’t find your gold. And that is, by the way, not unusual. So this is why I am fixated on needing to own crypto, because I fear a massive amount of inflation, and I don’t have [any]. Gold will do okay, the houses will do okay, those will keep me running in place. The idea of actually making money, well holy cow, I’ll take a shot at that with 1%.”
Cramer Is Not the Only One Looking to Open Long Positions in Bitcoin
It appears that the CNBC Mad Host is not the only one considering opening a long position in BTC. Billionaire investors such as Paul Tudor Jones, as well as multi-billion dollar public firms are starting to invest in the digital currency.
Recently, Michael Saylor – the CEO of MicroStrategy – said that the company now holds 38,250 Bitcoin. Based on the current BTC price, the stake is worth about $413.1 million. The CEO said:
“On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.”
Gold Is Dangerous, Says Crammer
Crammer recently expressed concerns about gold storage. During the interview, he said that gold is dangerous for kids to hold, and this makes BTC more attractive. He said:
“They will never understand gold. And the reason they will never understand gold is they think gold is dangerous.It’s dangerous because it can be stolen, it’s dangerous because they don’t want to take it out of the ban”