Jim Cramer, the host of CNBC’s “Mad Money,” is known for his expertise in the field of stock investing. However, when it comes to Bitcoin, it seems that Cramer is out of his depth. In a recent interview, he made several statements that showed his lack of understanding and knowledge about the world’s most popular cryptocurrency.
One of Cramer’s main arguments against Bitcoin is its volatility. He stated, “I still believe that Bitcoin is a failed currency. I still believe that it is too volatile to be considered a reliable store of value.” While it is true that Bitcoin’s price can be highly volatile, Cramer fails to recognize the potential that Bitcoin holds as a decentralized, open-source digital currency that is not controlled by any government or institution. Its volatility is a natural consequence of being a relatively new asset class and is not necessarily an indication of its failure.
Another point that Cramer made is that Bitcoin has no intrinsic value. He compared it to gold, saying, “There’s no one who would say gold’s down [to] $100 today, therefore I’ve got to buy the gold, because it’s on sale.” However, what Cramer fails to understand is that Bitcoin, like gold, derives its value from the trust and faith that people place in it. The idea that an asset needs to have intrinsic value, such as being useful in some practical sense, is outdated. In today’s digital age, value can be purely subjective and based on market demand.
Cramer also voiced concerns about Bitcoin’s potential for illegal activities, stating, “I think it’s going to be out of fashion just like Continental Illinois, Bank of New England, [and] Washington Mutual… The criminals will keep using it just the way they use the dollar.” While it is true that Bitcoin has been used in some illegal activities due to its anonymous nature, it is also important to note that the vast majority of Bitcoin transactions are legitimate. Moreover, the traditional banking system has been involved in numerous money laundering and fraud cases, so it is unfair to single out Bitcoin as a vehicle for illegal activities.
It is clear that Cramer’s lack of knowledge about Bitcoin is a serious blind spot. His arguments against Bitcoin are rooted in misconceptions and a failure to understand the revolutionary potential of digital currencies. Bitcoin and other cryptocurrencies have the potential to reshape the global financial system, offering greater transparency, security, and accessibility to individuals across the world.
While no one can predict the future of cryptocurrencies with certainty, it is important to seek information from experts who have a thorough understanding of the subject matter. Cramer’s dismissive attitude towards Bitcoin demonstrates that he is not one of those experts. Investors should take his opinions with a grain of salt and consult other sources before making their own decisions about Bitcoin and its potential as an investment.