Mad Money host Jim Cramer advises investors to avoid crypto and stick with gold if they want “a real hedge against serious inflation and economic turmoil.” . He added that bitcoin is too volatile to use as a currency.” Imagine a business owner trying to trade in Facebook or Google stock … It would be ridiculous,” he stressed.
Jim Cramer prefers Gold over Crypto
Jim Cramer, host of CNBC’s “Mad Money” show, offered some investment advice on gold and cryptocurrencies on Monday. Cramer is a former hedge fund manager and co-founder of Thestreet.com, a financial news and literacy website.
He believes that investors should stay away from cryptocurrencies despite bitcoin’s recent rise. Therefore, this is not a “discovery” process. He proceeded to advise.
If you want a real hedge against inflation and economic turmoil seriously, she (Garner) says you should stick with gold. And I agree.
The Mad Money host quoted Garner and explained that the correlation between bitcoin futures and the tech giant’s NASDAQ 100 is very high, as shown in their daily chart dating back to March 2021. This indicates that bitcoin behaves more like a risk asset rather than a stable store of value or currency, Cramer argued and elaborated.
Imagine a business owner trying to trade in Facebook or Google stock… It is ridiculous, they are too volatile. The same goes for Bitcoin.
Unlike Cramer, some people, such as venture capitalist Tim Draper and billionaire hedge fund manager Paul Tudor Jones, believe bitcoin is a better hedge against inflation than gold.
He also cautioned against “counterparty risk,” where the counterparty to a transaction or investment may not fulfill its obligations. He opined, “Of course, owning bitcoin directly in a decentralized wallet protects against counterparty risk.” He added, “Of course, you can also store your bitcoins directly in a decentralized wallet. And as FTX customers have learned, that can be devastating.”
The Mad Money host used to invest in bitcoin, ether, and non-fossil tokens (NFTs), but he sold all his crypto holdings last year. He had previously recommended bitcoin alongside gold; in March 2021, he said, ” For years I have been saying you should own gold: …… But gold has let me down. Gold is subject to too many vicissitudes. It is also subject to mining problems. Frankly, it could fail in many cases.”
He also repeatedly warns against doing a “roundup” of crypto companies that are not U.S. Securities and Exchange Commission (SEC) compliant and advises investors to get out of crypto now.” I wouldn’t touch crypto in a millio