CNBC’s Jim Cramer said on Tuesday that he owns some bitcoin and sees it as one of many investment choices rather than parking large amounts of money in cash, which in the current low interest rate basically yields zero.
“I own bitcoin. I’ve had it for a while,” Cramer said on “Squawk Box.” “It is an alternative to a cash position, where you earn nothing at all.”
“As a way of having a pastiche of things you should be using your money with, I’m all for it. I think it’s almost irresponsible not to include bitcoin,” added Cramer, saying he Bitcoin, like gold, also serves as a store of value and protection against inflation.
The host of “Mad Money” spoke about his personal views on bitcoin while commenting on Tesla’s disclosure Monday that the electric car maker has invested $ 1.5 billion in bitcoin and plans to accept it as a payment method.
Bitcoin surged to a record high of more than $ 48,000 early Tuesday before tying in some of those gains as the buying continued one day after Elon Musk’s Tesla announced its investment, the latest evidence of institutional interest in the world’s largest cryptocurrency.
“Bitcoin is exciting,” said Cramer. But he advised investors that it would be a good idea to hedge positions in the digital currency as it is so volatile and there aren’t many sellers at the moment.
Cramer called bitcoin a “little bloated,” but pointed out that “there are plenty of people who say it could go to $ 100,000.”
One such crypto investor who thinks bitcoin could rise to those levels by the end of the year is Galaxy Digital founder Michael Novogratz, a former Fortress hedge fund manager.