CNBC Mad Money Host, Jim Cramer, Calls Companies Not Owning any Bitcoin ‘Irresponsible’
According to the “Mad Money” host, every treasurer should be calling for putting a portion of their cash in Bitcoin.
It’s “almost irresponsible” for companies not to own Bitcoin, says Jim Cramer, the host of “Mad Money” in an interview with CNBC’s Andrew Sorkin.
Just this week, Tesla announced that they had bought $1.5 billion worth of Bitcoin (around 7.7%), and this endorsement from the major US has released a flurry of speculation regarding which company would be the next to join in.
While some don’t feel the same way, much like JPMorgan strategists who see it “unlikely” that more mainstream corporations would follow Tesla in BTC allocation, others expect the herd is coming.
“As far as a way to be able to have a pastiche of things to do with your cash, I’m all for it.” said the former hedge fund manager on Tuesday.
“I think it’s almost irresponsible not to include it. Every treasurer should be going to boards of directors and saying should we put a small portion of our cash in Bitcoin.”
Hedge against Fiat Currency
Cramer shared that he personally owns Bitcoin — “I own bitcoin. I’ve owned it for some time” — and called it “an alternative to a cash position, where you make absolutely nothing.”
Last year in December, Cramer tweeted that he was thinking of buying some BTC, and shortly after, in an interview with TheStreet, he decided to buy some under $18k but didn’t mention just how much exactly.
“Bitcoin is exciting,” he said on Tuesday, adding that he believes in the validity of the cryptocurrency while arguing that it could be used as a hedge against inflation or an equity portfolio.
“It seems to be an interesting way to hedge against the rest of the environment, nice hedge against fiat currency.”
A Trip to Higher Levels
Though Cramer noted that there are a lot of buyers and promoters of the leading digital currency, which is not the case for the seller at this time,
“you have to have some kind of hedge on it. Because if you take it and it goes down, I think that you’re gonna end up saying why did I use bitcoin when I could actually transact in dollars.”
The price of Bitcoin, which shot past a record high of $48,000 following the Tesla announcement, for now, is keeping around $46,500.
Calling Bitcoin a “little inflated,” he pointed out that “there’s plenty of people who say it could go to $100,000.”
Michael Novogratz of crypto investment firm Galaxy Digital is one such bull who sees the prices of Bitcoin going to $100,000 by the end of this year. He is also of the same opinion as Cramer and sees “every company in America do the same thing.”
“Young people are buying into the future, and they see cryptocurrencies – bitcoin and other cryptos – as their currencies.”