Recently, Jim Cramer, the host of CNBCs Mad Money, says he might invest 1% of his net worth in Bitcoin (BTC). The famed investor drew comparisons between BTC and gold and cited the importance of hedging against inflation.
During a podcast with Anthony Pompliano, Cramer said he would take a shot at that with 1%.
Since the lead up to Bitcoins 2017 bull run, CNBC, Bloomberg and institutional analysts have been extremely critical of the digital asset. Most claimed that cryptocurrencies were ponzi schemes, scams, or unsustainable, but this narrative began to shift in April 2019 when the digital asset recovered from lows in the sub-$4k range.
Most investors view safe-haven assets like gold as the go-to hedge against inflation, but they do not invest in these assets expecting immense returns.
Speaking with Pompliano, Cramer said he is drawn to Bitcoin by its demonstrated ability to rise in value while also acting as an inflation hedge. 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%.
It is not just Cramer who is considering opening a long position in Bitcoin. Billionaire investors like Paul Tudor Jones, and even multi-billion dollar public companies are beginning to invest in Bitcoin.
On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at a ...