Jim Cramer, the host of Mad Money and co-founder of The Street, has bought some bitcoin with the intention to keep increasing his holdings. He explained his purchase strategy and said there’s no reason not to wait for bitcoin’s price to come down again.
Jim Cramer Bought Bitcoin
Jim Cramer is the host of Mad Money on CNBC, a former hedge fund manager, and a co-founder of Thestreet.com, a financial news and literacy website. He tweeted on Friday in response to a comment about a dip in bitcoin’s price. “I think I will buy some,” he wrote.
Cramer confirmed a few hours later on Thestreet that he had purchased bitcoin. He then explained that he bought the cryptocurrency at the time because the price of bitcoin had just fallen back down to the $17K level. “It was simply a decent level,” the Mad Money host said, adding:
I will buy like I usually do. As something comes down, I’ll get bigger and bigger and bigger. I just think that you want to diversify into all sorts of asset classes.
“I have gold,” he continued. “I want to diversify into some bitcoin, not a big position for me but it’s certainly important to be diversified and bitcoin is an asset and I want to have a balance of assets.”
While responding to a question about how an investor would start investing in bitcoin, Cramer opined:
You just have to recognize the history of it that it ran up and then ran down. It got too much money, got too hot so there’s no reason not to wait for it to come down again.
When he bought bitcoin on Friday morning, he said that the price of the cryptocurrency was “off nicely from the top, and I like to buy something that’s off nicely from the top.”
In September, Cramer said that he was considering buying bitcoin because he feared a “massive amount of inflation.” He was also concerned about leaving an inheritance to his children, emphasizing that they would not feel comfortable with gold but would feel comfortable with crypto.
What do you think about Jim Cramer’s bitcoin buy strategy? Let us know