It should be noted that Jim Cramer has been in the cryptocurrency industry for quite some time. In particular, in mid-April he announced that he had sold half of his bitcoins, bought back in the region of $12,000 per coin. In doing so, the coins sold were allegedly enough to pay the mortgage on his house. Read more about the story here.


Should you buy cryptocurrencies?

The presenter makes no secret of the fact that in his eyes, the cryptosphere is based on the “greater fool theory”. In other words, a lot of people buy coins just for the sake of selling them at a higher price. Investors also hope that there will always be a “bigger fool” who will be willing to buy back their assets at the value they want.

CNBC anchor Jim Cramer

For now, Cramer is keeping Etherium in his wallets, as he previously sold most of his capital in bitcoin. The current bullish trend in the crypto industry could last for quite some time, as there are “millions more big fools in the market”, the expert believes.

And yet the financier is ready to easily part with all his digital assets altogether if their price reaches the level he wants. Here’s his quote on the matter, published in CryptoPotato.

I am not tied to Etherium and would be willing to sell my entire altcoin position in the future if its price still rises.

Bullrun right now

As a reminder, Etherium set a new all-time high the day before. The cryptocurrency now tops out at $4,460. Meanwhile, ETH managed to jump to $4,372 in May 2021, followed by a sharp market decline.

A daily chart of the Etherium exchange rate

On top of that, Jim voiced a rather unpopular opinion – he wasn’t buying crypto as a hedge against inflation, but as a simple tool for adventurous transactions. He continues.

I didn’t buy Bitcoin or Etherium as a protection against inflation. Honestly, it’s all like gambling to me. I was just playing on crowd psychology and I have no idea why all these cryptocurrencies have gone up in value.


We think that after this quote, you can no longer take Kramer's words about cryptocurrencies seriously. Firstly, even Elon Musk had stated the day before about the dangers of inflation to the global economy. Second, popular cryptocurrencies have excellent long-run returns, which not only protects funds from inflation, but also allows for decent earnings.

As a prime example, I can think of the Shiba Inu token, which rose an obscene amount of percent in one year. Of course, this is the exception to the rule in the cryptocurrency world, but it is at least unfair to deny ample opportunities for those wishing to make money here.


Shiba Inu cryptocurrency price performance over various periods

In general, though, Kramer advises those who already have some profits in trading to “take some chips off the table”, that is, lock in the unrealised gain on trades. That said, it seems to us that Jim has no authority to make recommendations to members of the cryptocurrency community given his attitude to the coin niche. Obviously, he does not share the values of decentralisation aficionados and generally sees the field solely as a card table. Therefore, traditionally one has to listen not to Kramer, but to himself when it comes to investment decisions. And the latter should preferably be made after conducting one’s own research on projects, the market in general, and so on.

We believe that this approach to cryptocurrencies is hardly the right one. However, blockchain-based digital assets not only make money when approached correctly, but they are also seriously changing the world of finance for the better. Thanks to the DeFi industry, more and more people are taking control of their money and using various financial sectors that in some parts of the world are still impossible to reach. So to think of coins as gambling is strange to say the least.

What do you think about this? Share your opinion in our Millionaire Crypto Chat. There we will discuss other important developments that are related to the decentralisation and finance industry.