Mad Money host Jim Cramer has some advice on how to invest in Bitcoin and when is a good time to sell. He said, “I am a Bitcoin believer” and explained the reasons why it is sold in the cryptocurrency and why people buy Bitcoin instead of gold.
Jim Cramer’s advice on investing in Bitcoin
Jim Cramer, the host of Mad Money at 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 currency anymore,” Cramer began. “People think the US is printing money … But Bitcoin doesn’t print Bitcoin. This is just as valuable as gold, which is difficult to find. And gold is growing, we find about 1% more than last year, that’s all … so it has to do with scarcity. “
He stressed that “there is no dollar shortage” while “there is some gold shortage,” he contrasted:
There is a total shortage of Bitcoin. If you have something that is totally in short supply at a time when people fear inflation and don’t believe in government bonds and they don’t believe in governments in general, then this bitcoin suddenly has grabs.
The Mad Money host went on to say, “The more people there are [bitcoin] A higher price … the more likely it is that more people will come in. “
Treat bitcoin like stocks when to take profits
Cramer also shared, “I sold enough bitcoin yesterday to pay for my first bet. I would do that if it was a stock. I take out my base and then let it run. “He added,” I won’t be looking at Bitcoin again. I’m fine with Bitcoin until it’s back to where I bought it, and then I’ll reconfigure it, maybe buy it again. “
Cramer explained, “As I tell people … when you have a double, you take out a lot. And I doubled up so I took out a lot. It’s just no different from a stock that I’ve had a double on, except for the fact that this thing is [bitcoin] doubled in my absence and that’s too fast for me. “He confirmed:” Now I don’t have to worry anymore. Play with the house money. See what happens. “
I consider bitcoin to be a precious stock.
Buy bitcoin as insurance, compare bitcoin to gold
Cramer sees bitcoin and gold as insurance, for example against inflation, as he explained earlier. “I think you need to have that type of insurance,” he said of the two assets. However, the Mad Money host stated, “I didn’t expect this insurance to make me so much money. Insurance usually doesn’t make a lot of money. “
A Twitter user asked him last week, “Are you surprised that gold has not recovered after this week? It seems like everything that is going on should have been bullish for gold. “Cramer replied,” Either it’s not so messy out there so that gold doesn’t bounce, or it’s all going to be cryptographic. But remember, there was no flight to quality (treasuries). “In addition to the statement:” I am a believer in gold, “said Cramer on Thestreet:
I’m a bitcoin believer … I have a feeling that bitcoin is doing what gold used to do right now. What is interesting is that there is a huge shortage of gold, but it just doesn’t work the way it should because I think people are buying bitcoin.
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