Bitcoin Investors Should Consider Vegas Instead, Jim Cramer Says
Jim Cramer, the host of CNBC’s Mad Money program and a former hedge fund manager, has called Bitcoin pure gambling and said that people showing interest in the cryptocurrency could do better in Vegas.
Jim Cramer said on Wednesday that Bitcoin was just a gamble and called on cryptocurrency fans to go to gambling capital Las Vegas instead.
TheStreet co-founder and CNBC’s Mad Money host made the statements on CNBC’s morning TV program Squawk Box, which features prominent individuals from business and politics.
Cramer showed no mercy to the largest and oldest cryptocurrency.
“It's kind of like monopoly money,” he said. “Obviously, there's people who use it. If you ever say anything bad about it, there's like this 'bitcoin mafia' that comes after you. But it is an oddity that has nothing to do with us as investors.”
He added that the cryptocurrency was pure gambling right now, suggesting there might be a better place for Bitcoin enthusiasts.
“I mean if you want to gamble, go to Vegas. Vegas is fabulous.”
“I mean honestly, what's the difference between bitcoin and trying to figure out the Super Bowl? I mean it's gambling,” Cramer added.
On Wednesday evening, Bitcoin crossed the $13,000 mark for the first time in its history, setting a new record. Since the beginning of this year, the coin has gained over 1,200%. The Wednesday gain pushed Bitcoin’s market capitalization to $224 billion, which leaves behind giants like Visa, Wal-Mart, Pfizer, or Coca-Cola.
The price surge has sparked skepticism among many bankers and investors. Jamie Dimon, who called Bitcoin a fraud, is one of the most famous naysayers.
This is not the first time Cramer has voiced his concerns over Bitcoin. At the end of November, he said the cryptocurrency was the choice of investors looking for a quick profit. He said Bitcoin was “…used by traders hungry for its rapid-fire gains and by companies to pay off hackers using ransomware.”
He made similar comments in June, when the Bitcoin price was fluctuating around $3,000.
Currently, investors are waiting for the launch of Bitcoin futures contracts by Chicago-based CME Group. The futures can be traded starting from December 18.