Mainstream media has not often been kind to cryptocurrency, but CNBC’s Jim Cramer has offered a positive outlook on crypto. Or, not so much crypto as investing in the nascent digital asset class.
According to the Mad Money host, investing in crypto is acceptable, provided that investors understand the high risk associated with the asset class, not least brought on by lack of regulatory clarity, but also because of the high incidence of fraud and scams that happen in crypto.
Experienced investors, such as Shark Tank investor Mark Cuban, have been victims of “rug-pull” schemes where an altcoin tanks and disappears into the dark web, leaving investors empty-handed.
However, Crammer seems to think that crypto assets operate based on the “greater fool” theory which essentially postulates that an asset may be worth something, providing there are people who are willing to buy it at a higher price from current investors. Those are the so-called “greater fool”.
The theory works, but where it stops delivering results is when there are no more greater fools left. Assets such as Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE) have now achieved some institutional significance with adoption by big companies and investment firms.
Yet, there are many more that fit that theory profile, such as the meme coin Shiba Inu which has no real-world application just yet but has been surpassing its cousin, DOGE, in terms of market cap.
Crammer, though, seems confident that there is some worth in assets such as BTC and ETH. “I know a lot of people say ridiculous things about crypto – and I’ve caught a lot of flack for acknowledging that – but at the end of the day I’ve said repeatedly that you can use bitcoin or Ethereum as a hedge against inflation. Up to 5% of your savings, as a replacement for gold”, the investor said.
Crammer himself had invested in crypto, but in his own account, he was gambling and not trying to hedge against inflation. However, he said he was gambling against crowd psychology, successfully predicting that interest in those currencies will continue to soar over time.
Presently, BTC and ETH seem to be the two most reliable currencies to invest in. Betting on any other coin is much like placing a 16 on roulette in a casino and spinning the wheel.
If you are the gambling type, though, you can use many crypto tokens to play casino games at established websites such as Bitcasino, 1xBit or FortuneJack.