Jim Cramer from Mad Money is investing in crypto because there could be millions of larger fools - markets and prices
Jim Cramer from Mad Money is investing in crypto because there could be millions of larger fools - markets and prices
The moderator of Mad Money, Jim Cramer, has some advice for crypto investors. "As long as you realize the very real way that the entire investment case for crypto is based on the theory of the larger fool, you have my blessing to speculate about it," he said. Cramer added that he holds ether in his hand because he believes that "there could be millions of larger fools out there".
Jim Cramer's crypto investment advice
The moderator of the Mad Money Show on CNBC, Jim Cramer, spoke on crypto investments on Thursday. The former hedge fund manager, the Thestreet.com, co-founded a website for financial news and literacy, said:
As long as you can see the very real way that the entire investment case for crypto is based on the theory of the larger fool, you have my blessing.
The Greater Fool theory says that the price of an asset is determined by whether they can sell it at a higher price at a later time. The theory refers to the idea that you can earn money by buying a wealth value because there is someone who wants to buy it from you at a higher price.
Cramer added: "I know that many people say ridiculous things about crypto, and I got a lot of trouble because I recognized it." However, he emphasized:
In the end I said repeatedly that you can use Bitcoin or Ethereum as inflation protection, up to 5% of your savings as a replacement for gold.
in August, the Mad Money host recommended to 5% of the portfolios in cryptocurrencies and Specifies that he believes in crypto. He said in March that Gold left it down .
Cramer said: "I didn't bought Bitcoin or Ethereum as an inflation insurance. I honestly gambled. However, I simply played with the psychology of the masses, and I have no idea why these things have increased so much, except that there are many enthusiastic people who want to buy and sell higher." He stated:
I stick to my Ethereum because I think there could be millions of larger fools out there. I think that's a decent bet.
he continued: "I have no special bond with Ethereum and at some point I will ring the register for the rest of my position when I think it's done to go higher."
The price for ether achieved a All-time high on Friday. At the time of writing, ETH is at 4,274 US dollar. In the last 24 hours it has decreased by 3.5 %, but in the past seven days by 7 % and in the last 30 days by almost 50 %.
In June, Cramer announced that he almost all of his bitcoins after the Chinese government repeated her crypto. In the same month he said that he insert money eth notes: "I like Ethereum because people actually use it a lot more to buy things." In September, the host of Mad Money Krypto investors, take a profit whether they had crypto profits due to concerns about Evergrande and Tether.
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