Jim Cramer, host of CNBC’s “Mad Money”, warned his viewers about cryptocurrencies, advising them to be mindful of the risks of the crypto industry.
The well-known US TV personality, Cramer, claims that investments in Bitcoin and cryptocurrencies are based on the “biggest idiot theory”.
Stating that he sold almost all of the Bitcoins he held after China’s ban, Cramer stated that he mostly had Ethereum.
The American presenter stated that he is not a proponent of the second-largest cryptocurrency ETH, saying that he will sell his positions when the price of ETH increases.
“I have no particular affiliation with Ethereum and eventually, when I think the rise is over, I will sell the remainder of my position.”
Stating that he is not a crypto money investor due to inflationary reasons, Cramer admitted that he does not see Bitcoin and other cryptocurrencies as an investment tool for the future.
“I did not buy Bitcoin or Ethereum as insurance against inflation. Frankly, I was just gambling. I was just betting on the psychology of the masses.”
Cramer also stated that he will not sell his crypto assets at the moment due to the “bigger idiot” theory, which expresses the idea that a lot of money can be made because there is someone who will buy an asset at a higher price after purchasing it.
*Not investment advice.