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As the Bitcoin price hit an all-time high of over $20k on Wednesday morning, the cryptocurrencies are being accepted by the mainstream finance players more than ever. A lot of big Wall Street institutions and companies have recently announced major investments in Bitcoin and cryptocurrencies have been endorsed by a number of influential public figures. The latest in a long line of prominent journalists, pundits, and investors to express their support for Bitcoin is Jim Cramer, Mad Money on CNBC host, co-founder of influential finance web site TheStreet and former hedge fund manager.
In a short interview with TheStreet’s Katherine Ross, Cramer announced that he already purchased some Bitcoin and explained his motivation behind the move. The host of Mad Money gave some insight into his intentions on Friday tweeting out: “I think I will buy some” in response to a Bitcoin-related question from one of his followers and just a short time later he made it known that he has indeed already bought some Bitcoin positions.
He felt that it was a decent level to buy at and that it’s not much different from his other investments. Once something goes down, he’ll pounce on it and buy bigger and bigger positions. He added that it’s essential to diversify your portfolio so it contains all types of assets. Cramer noted that he already has a lot invested in gold and that Bitcoin contributes to the diversification and balance of his assets.
When asked why and how should an investor start to put their resources into Bitcoin, Cramer responded that the history of Bitcoin movements clearly show that it ran up and it ran down, and with all of the money being invested right now, there’s no reason not to hold on and wait for it to be on the downside again. On Friday morning, when he made his purchase, the price of Bitcoin was, in his words “off nicely from the top” and that’s the exact moment when he likes to buy something.
In addition, he wanted to have a position in Bitcoin, so he could leave cryptocurrency inheritance to his children. He feels that the next generation would be much more comfortable owning Bitcoin, than the gold, of which he already owns aplenty.
In an interview with Morgan Creek Digital partner Anthony Pompliano, Cramer expressed some concerns about Bitcoin security and its exposure to hackers but still believes that next to gold, works of art, and real estate, Bitcoin is the best hedge against inflation. He also agreed with Pompliano that Bitcoin has an even higher upside than gold. Jim Cramer added that he’s not too afraid of the potential fluctuation and volatile nature of Bitcoin as he mainly plans to have it in his portfolio as an alternative asset for hedging purposes.
• Source: Why Jim Cramer Bought Bitcoin from Thestreet.com.com On December 11, 2020.