American TV presenter Jim Cramer argued that cryptocurrencies have long-term value because they are decentralized assets that could become mainstream in the future. However, he recommended that investors interact mainly with bitcoin and ethereum, as they have attracted the attention of the general public and “seem to be the most legitimate.”
Cramer’s latest cryptocurrency advice
In a recent interviewJim Cramer, host of CNBC’s Mad Money, has described himself as a “believer” in digital assets, primarily bitcoin and ethereum. In his opinion, the two largest cryptocurrencies by market capitalization have been adopted by many investors and seem to have the biggest merit.
In addition, Ethereum has a huge presence in the non-fungible token niche, and so Cramer had to purchase some amount to fulfill the NFT order:
“I can’t tell you not to own cryptocurrencies. I own Ethereum. They didn’t let me make dollars. I had to buy it in Ethereum so I researched it and it has some qualities that I like.”
Despite his positive opinion, he believes that cryptocurrencies should not make up more than 5% of the portfolio. These can be speculative investments and many investors take advantage of price fluctuations to make a profit.
Cramer subsequently advised people never to borrow money to enter the crypto market, as the asset class is vastly different from most products:
“Take a loan for a house, for a car – but not for cryptocurrency. Don’t put it in a Procter & Gamble class. It’s not Coca-Cola, it’s not Apple.”
His previous cryptographic visions
In the past few years, Cramer has been quite hesitant about his cryptocurrency stance. In November 2020, he called Bitcoin a “great alternative” to gold. The announcement came as a surprise as Kramer had previously positioned himself as a true supporter of the precious metal and also called BTC an “outlaw currency.”
A month later, the price of the digital asset dropped significantly and the American took the opportunity to increase his crypto holdings. He explained that his position was “small” but “undoubtedly important for diversification.”
Last April, Cramer doubled down on his optimistic view, saying he wants to be paid in bitcoin. “I think it’s a strong value hold,” he said at the time.
However, a few months later, he made a U-turn, stating that the crypto sector is full of “big fools.” He also explained that he did not invest part of his fortune in the market due to inflationary reasons. Instead, he “just gambled”.
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Credit : cryptopotato.com