Mad Money" host Jim Cramer believes the Fed will devalue all assets not backed by physical goods.
Jim Cramer, host of "Mad Money," believes that the Federal Reserve will devalue all assets that are not backed by physical goods.
Jim Crame's latest U-turn on cryptocurrency is yet another example of his inconsistency on the issue. He has previously called bitcoin and altcoins speculative assets, and now he is warning individuals to refrain from investing in them. This flip-flopping makes it difficult to take Crame's advice seriously, and it raises doubts about his true beliefs on the matter.
In the past few years, Cramer has displayed a somewhat controversial view of the crypto sector. In 2021, he insisted on receiving his salary in bitcoin. Following the major price correction, though, he abandoned those plans, selling almost all of his BTC holdings. Cramer's views on crypto have been somewhat controversial, to say the least. In 2021, he made headlines by insisting that he be paid in bitcoin. But following the big price crash in late 2021, he sold almost all of his BTC holdings. It's unclear what Cramer's views on
Don't get scammed by crypto schemes!
It's not surprising that Jim Cramer is advising investors to steer clear of cryptocurrencies. The US Federal Reserve has made it clear that it is committed to bringing down speculative assets, and cryptocurrencies certainly fit that bill. Cramer is just the latest Wall Street figure to warn against investing in digital currencies.
“Look, Fed chief Jay Powell told us that we need to stop doing stupid things with our money… What matters is that we just have to get through it intact. Don’t get memed. Don’t get SPAC’d. Don’t get crypto’d. And you’ll get through this thicket and find yourself in a much better time when we are sufficiently oversold for a huge bounce.”
Cramer's vision is that the Fed has the capability to wash out all projects that could be described as "gambling." However, he believes that the institution might harm some meaningful ones in the process, too.
The Fed's approach to tackling inflation is harming bitcoin, according to Bitfury's CEO Brian Brooks. In a recent interview, Brooks said that the Fed's quantitative easing policies are effectively devaluing the US dollar, making bitcoin a more attractive investment. He went on to say that the Fed's policies are also contributing to rising income inequality, as
“We have talked about the idea that bitcoin is an inflation hedge. The more the market expects tough policy from the Fed, the more people think the Fed is going to keep an aggressive posture, and that would tend to harm Bitcoin.”
Thoughts on the past: what has changed, and what hasn't?
I think it's safe to say that Cramer is among those who often change their vision of the digital asset industry, mostly based on current prices. I think that's just a natural part of investing; you have to be willing to change your opinion based on new information. However, I do think that Cramer's constant changing of his mind could be confusing for some investors.
I believe that Bitcoin is a revolutionary new asset class with the potential to change the financial system as we know it. I think that its price will continue to rise as more and more people adopt it as a store of value and means of exchange. I think that Bitcoin will one day be worth millions of dollars per coin, and I am excited to be a part of its growth.
I believe that the crypto industry is in a period of transition and consolidation. The Chinese crackdown was a major setback, but I believe that the sector will eventually recover and thrive. The key is to find the right projects and companies to invest in, and to be patient. I believe that the industry has great potential and will eventually reach mainstream adoption.
In my opinion, Bitcoin and Ether have captured the attention of broad society and seem the most legitimate. I would recommend that investors interact only with those two cryptocurrencies and never borrow money to join the market.
I believe that the Fed will take down speculative assets like Bitcoin in the near future. I think that this is because the Fed is worried about inflation and wants to keep the value of the dollar high. I think that this will be bad for Bitcoin investors, but it is something that the Fed may do in order to keep inflation under control