In a recent live broadcast on CNBC, veteran trader and host Jim Cramer expressed his reservations about Bitcoin as a hedge investment in times of inflation and economic instability.
Jim Cramer, who is known for his reactionary statements and is often the subject of ridicule because the exact opposite of his predictions come true, said, “I can't hang out with Bitcoin because I can't be in a place where Mr. Bitcoin is about to experience a big decline.”
He suggested to his audience that they would be better off investing in gold, a traditional safe-haven asset, rather than cryptocurrencies.
“The charts show you should ignore the crypto fans as Bitcoin bounces. And if you want a real hedge against inflation or economic chaos, you should stick with gold,” Cramer added.
This isn't the first time Cramer has expressed skepticism towards Bitcoin. In June 2021, he announced that he was selling most of his Bitcoin holdings following China's crackdown on crypto miners. He also expressed concerns about structural problems in Bitcoin and predicted that its price would drop further.
But not everyone shares Cramer's views. Appearing on CNBC earlier Tuesday, billionaire hedge fund manager Paul Tudor Jones expressed his support for both Bitcoin and gold due to the combination of extensive geopolitical risk and rising US government debt levels.
*This is not investment advice.