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Owing to the high volatility of Bitcoin (BTC), American television personality, author, and host of Mad Money on CNBC Jim Cramer has advised crypto investors to choose Gold over the largest digital currency.
According to Cramer, gold has proven to be an asset class that has non-speculative use cases while BTC is more or less a “risky asset”. Cramer’s position is influenced by the fact that gold with its real demand push is barely impacted by stricter financial conditions unlike cryptocurrencies, BTC is not excluded.
Based on the analysis conducted by Cramer, investors tend to utilize gold as a cover in times of inflation and economic chaos while cryptocurrency has become too volatile and is therefore not a suitable hedge against inflation. Similarly, he also noted that no matter how hard investors or Bitcoin holders try to avoid the counterparty risk, it still bounces back to them, most especially when they want to use BTC for anything.
Meanwhile, this is not the first time Jim Cramer is speaking about digital currency with the aim of driving people away from cryptocurrencies.
In December, he urged crypto investors to sell off their crypto holdings saying the industry is in for a deeper plunge which he believes will happen this year. Likewise in September, the CNBC Mad Money host referred to Bitcoin and other crypto tokens as speculative assets and warned people against making investments in them.
The League of Bitcoin Critics
However, one experienced hedge fund manager Mark Yusko thinks differently from Cramer. In his thoughts, BTC could one day replace gold because of its greater ease of division and transportation. Also, Yusko claims the price of the leading cryptocurrency will reach six figures eventually.
Early this year, Jamie Dimon, the CEO of JPMorgan Chase $ Co described BTC and other digital assets as “decentralized Ponzi schemes” because they are frequently used for illegal activities including money laundering and sex trafficking. The CEO also said most owners of digital currency use it as an investment tool rather than payment for goods and services.
The post Jim Cramer Chooses Gold over Bitcoin as a Proven Asset Class appeared first on Blockchain, Crypto and Stock News.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.