The host of CNBC’s ‘Mad Money’ has said that he doesn’t blame investors from buying into bitcoin, but that it could end badly.
Speaking earlier this week Jim Cramer, former hedge fund manager, best-selling author, and host of Mad Money, compared the digital currency to that of monopoly money, arguing that people who wanted to gamble should just go to Vegas.
Since then, bitcoin’s value has surged to unprecedented heights. Just yesterday, it was reported that the cryptocurrency had risen to over $17,000, for the first time, at $17,200 on BitMEX. However, prices for the currency widely varied on several exchanges with differences amounting to as much as $2,000 in value. For example, on Coinbase’s GDAX exchange, bitcoin was valued at more than $18,260, whereas, on Bitfinex, it was trading at $15,500.
Speaking yesterday on CNBC’s ‘Squawk Box,’ Cramer argued that people are simply holding on to their coins instead of flipping them, adding:
“I don’t blame anyone for wanting to own it because it’s a fun ride. And I don’t want to talk about when the party is going to be over because maybe the thing is going to Mars. Maybe the thing is going to Jupiter.”
However, with bitcoin’s value continuing its upward trajectory people are more than likely going to continue hoarding their coins. And as Cramer states, the mechanics behind it make it so that there are no sellers.
“And if there are no sellers, then it is parabolic,” he said.
Cramer has spoken out against the digital currency before, joining the naysayers brigade by claiming that it is a prime example of a bubble. During one of his shows last month, he argued that the stock market is the only thing that has ‘real and obvious value.’
“A year ago, one bitcoin was worth $750,” he said at the time. “You mean to tell me that’s not a bubble? You think that’s a safe place, a reasonable approximation of value versus the stock market??Despite this, though, with the cryptocurrency increasing in value more investors will be keen to jump on board. Furthermore, with the upcoming launch of Chicago-based exchanges Cboe and the CME Group’s bitcoin futures this month, it’s likely that new traders will join, eager to trade in a digital asset that is regulated. Not only that, but Nasdaq is expected to launch its own bitcoin futures in the first half of 2018, increasing the number of regulated exchanges intent on getting involved with cryptocurrency trading.
