CNBC’s Jim Cramer said Tuesday that he owns bitcoins and sees it as one of several investment options instead of parking large amounts of cash, which in today’s low interest rate environment basically earns zero.
“I have bitcoins. I’ve owned them for a long time,” Cramer told Squawk Box. “It’s an alternative to the cash position, where absolutely nothing is done.”
“As a way to have a pastix of things you should use your cash with, I’m all in favor. I think it’s almost irresponsible not to include bitcoin,” Cramer added, saying he also considers bitcoin as the gold, as an accumulation of value and protection against inflation.
The host of “Mad Money” spoke of his personal views on bitcoin while reacting to Tesla’s revelation on Monday that the electric car maker has invested $ 1.5 billion in bitcoin and plans to accept it as a form of payment. .
Bitcoin first Tuesday rose to an all-time high of more than $ 48,000 before matching some of those gains as buying continued a day after Elon Musk’s Tesla announced its investment, the latest evidence from the institutional interest in the world’s largest cryptocurrency.
“Bitcoin is exciting,” Cramer said. But he advised investors that it would be a good idea to hedge positions in digital currency because it is very volatile and right now there are not many sellers.
Cramer called Bitcoin “slightly inflated,” but noted that “there are a lot of people who say it could reach $ 100,000.”
One such cryptocurrency investor who believes bitcoin could rise to these levels by the end of the year is Galaxy Digital founder Michael Novogratz, a former Fortress hedge fund manager.