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US TV star Jim Cramer advised cryptocurrency investors to beware of the risks associated with the digital asset industry. According to him, investments in bitcoin and altcoins are based on the "big fool theory".
He has invested himself and criticizes at the same time
Moreover, Cramer admitted that he is not a BTC holder. He is not even convinced by investing in him for inflationary reasons. He said he once speculated on bitcoin, but didn't call it investing - "he just gambled."
In addition, the CNBC TV star believes that the cryptocurrency industry is related to the "big fool theory". At its core, this concept relates to the idea that you can make money by buying assets and then selling them, because there is always someone to buy them at a higher price.
Cramer says there are "millions of bigger fools" in the cryptocurrency market. After China's attacks on the digital asset and BTC mining markets this summer, she sold her entire stock of bitcoins. He only has a little ETH left.
However, the American said that he is also not a staunch supporter of the second-largest cryptocurrency, and has even admitted that he will sell his positions on ETH when the asset's price rises. With ether hitting the new ATH yesterday, Cramer appears to believe its USD value may continue to grow in the future:
"I have no particular affinity for Ethereum and will eventually sell the rest of my position when I think the bull market is over."
So Cramer ultimately stands alongside those who view the digital asset class as purely speculative. It does not use BTC as a hedge against inflation.
- I didn't buy bitcoin or ethereum as insurance against inflation. Honestly, I was gambling. I just bet on crowd psychology and have no idea why these things have gone up, he said.
