Former hedge fund manager and current CNBC TV host Jim Cramer has changed his mind on Bitcoin. Appearing on Anthony Pompliano’s podcast, Cramer gave the reasons for his change of heart.
Cramer Changes His Mind on Bitcoin
CNBC’s Mad Money host has previously had a somewhat erratic relationship with Bitcoin. Although he claimed in 2017 that BTC’s price would eventually hit $1 million, he had also been critical of the asset and named it an “outlaw currency” a year later.
However, it seems that the events in 2020 have altered his mind with a little assistance from the popular Bitcoin proponent – Anthony “Pomp” Pompliano.
Morgan Creek Digital’s co-founder and partner firstly hinted on Twitter that he had convinced Cramer to buy Bitcoin. The details became known a few days later when Pomp released his latest podcast episode with the famous TV host.
Apart from Pompliano outlining BTC’s merits, Cramer said that he found Bitcoin’s maximum supply of 21 million as a significant advantage over the traditional financial system and fiat currencies, in particular. He singled out the US Federal Reserve’s actions to print out trillions of dollars as stimulus packages.
“For a long time, people would say ‘well, how about Bitcoin,’ and I said ‘well, I don’t trade coffee, I don’t trade cotton, and I don’t trade Bitcoin,’ and that sufficed for a very long time. It worked until the $3 trillion packages because we don’t have that. We don’t have three trillion in this country.”
Crypto Will Lead Generational Changes
Cramer and Pomp also touched upon another widely-discussed topic within the community – how different generations view investment options. The narrative that Bitcoin is the younger generation’s gold has been previously brought up by Rich Dad, Poor Dad author Robert Kiyosaki and the giant US multinational bank – JPMorgan Chase & Co.
Mad Money’s host said that “when my kids get my inheritance, they won’t feel comfortable with gold, and will feel comfortable with crypto.”
He classified his “outdated” gold storage practices as trying to work with a typewriter during these times of global digitalization.
Cramer didn’t seem optimistic regarding the global economy’s short-term future. He believes that Bitcoin resembles gold in numerous aspects, and when it comes down to protecting your assets, he asserted, “you have to have one or the other.”
“We are on a collision course, which makes me feel great about the gold I own, but I do feel that it’s perfectly logical to add crypto to the menu.”
Featured Image Courtesy Of Yahoo