Recently, Jim Cramer, the host of CNBC’s Mad Money, says he might invest 1% of his net worth in Bitcoin (BTC). The famed investor drew comparisons between BTC and gold and cited the importance of hedging against inflation.
During a podcast with Anthony Pompliano, Cramer said he would “take a shot at that with 1%.”
Since the lead up to Bitcoin’s 2017 bull run, CNBC, Bloomberg and institutional analysts have been extremely critical of the digital asset. Most claimed that cryptocurrencies were ponzi schemes, scams, or unsustainable, but this narrative began to shift in April 2019 when the digital asset recovered from lows in the sub-$4k range.
Most investors view safe-haven assets like gold as the go-to hedge against inflation, but they do not invest in these assets expecting immense returns.
Speaking with Pompliano, Cramer said he is drawn to Bitcoin by its demonstrated ability to rise in value while also acting as an inflation hedge. He said: