” There are fortunes to be made in crypto “, argues Jim Cramer, a skeptic who recently converted to bitcoin. However, many of the crypto enthusiasts do not hesitate to warn against his advice. We explain the reasons to you.
Cramer advises you to invest 5% of your savings in bitcoin
Jim Cramer was known as a strong proponent of traditional finance long before 2018. It was at a time when bitcoin fell to $6,000 per share. coin. Two years later, the world was surprised by a Cramer face. In fact, the host of the show “Mad Money” announced that there are fortunes to be made in the universe of cryptocurrencies.
Interviewed by CNBC Make It, Cramer confessed to having ethereum. The reason for this purchase? His intention to benefit from an NFT launched during a charity event.
” I had to buy it in ethereum so I did some research and it has qualities that I like,” reasoned the one who previously maintained that there were none “no real value in crypto “. At one point, Jim Cramer even went so far as to predict further declines in the crypto market.
Since his conversion, he has not hesitated to support ETH and BTC. He also gave some advice to investors namely:
- never borrow money to afford crypto assets;
- do not include them in the same category as Coca-Cola, Procter & Gamble, Apple, etc.;
- and not invest more than 5% of our savings in cryptocurrencies;
Recently, he welcomed the opening of an investigation by the Securities and Exchange Commission (SEC) against Coinbase. The latter would actually have offered to trade “ securities » not registered with the regulator.
” I have been waiting a long time for this SEC investigation of Coinbase to happen. We are here now. You can’t do what you want with titles in this country… “, he tweeted.
He is not as holy as he looks
Cryptocurrencies have not no real value “, launched Jim Cramer at one point. The advice he gave here and there does not seem to be sufficient to restore his image.
Some crypto-enthusiasts like John E Deaton go so far as to bash him on Twitter by posting such messages:
” Sorry @jimcramer but I have to admit your comment is the most bullish sign cryptos have had in weeks “.
On Quora, the founder of In Bitcoin We Trust also warned bitcoiners about the words to this effect stock selector notes:
” Watch out for Jim Cramer and his famous advice on the world of cryptocurrencies or the stock market… »
Didn’t he emphasize that he entered the crypto world as a “gamer”?
” I didn’t buy bitcoin or ethereum as inflation insurance. Honestly, I played. I was just playing on crowd psychology though and I have no idea why these things went up other than there are a lot of over enthusiastic people out there wanting to buy high and sell higher. »
Indeed, it is the theory of the greatest lunatic that Bill Gates did not hesitate to associate with cryptographic assets when he spoke on the subject.
Also, let’s not forget that Cramer was a real fan of Coinbase two years ago. Now that the US stock market is in good shape, it is switching sides. Deaton does not appreciate this gesture.
Regarding the question” should we be wary of Cramer the answer is up to each investor. If the use of the word “play” can disgust holders and bitcoiners, newbies can see it as something to reduce the risks associated with this adventure. Because the level of risk tolerance differs from person to person. And with the volatility of bitcoin and other cryptocurrencies, it would seem more sensible to use the 5% of your savings. At this point, the ball is in your court.
Sources: CNBC; Nasdaq; U° today
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