Jim Cramer – legendary investor and host of “Mad Money” – has become a sudden bitcoin advocate, and claims he paid off his house using the asset.
Jim Cramer Is Now a BTC Fan
In the past, Cramer claims to have purchased quite a bit of the world’s number one digital currency when it was priced at around $12,000 per unit. Since then, he claims to have sold a large stake and raked in some heavy profit. He has used some of the funds to pay off his home, thereby clarifying that while bitcoin itself was not used to pay off the home, the money he made from BTC was.
In an interview, he said:
I paid off a mortgage yesterday with it. From the chart, I may be the only natural seller, but it was great to pay off a mortgage. It was like, kind of, phony money paying for real money. I now own a house – lock, stock and barrel – because I bought this currency… I’ve sold half all the way up.
While the news is certainly positive in many ways and moves bitcoin in the right direction, it is a bit disturbing to see that Cramer is still referring to bitcoin as “phony money” in his interview. It is unclear if he really feels this way or if he is simply trying to get under analysts’ skin and joking around. Either way, granted his words are heartfelt, his knowledge of bitcoin is likely still lagging.
To refer to bitcoin as a “phony” currency shows that the asset is not fully understood. BTC is now being used by several major institutions to purchase goods and services. PayPal and Tesla – billion-dollar firms – are among those companies that have agreed to allow customers to utilize BTC for this purpose, so are those enterprises “phony” as well?
Why would so many big names suddenly begin allowing bitcoin purchases if this were a phony currency? The fact that such large companies now view bitcoin in the same lens that they do both credit cards and fiat suggests that bitcoin is and always has been a currency or at least a bartering tool that can operate in a similar manner.
It Needs to Be Part of Every Portfolio
It is also odd that Cramer would refer to bitcoin in this way given that he has been strangely positive towards in the past. In February, for example, he praised bitcoin and claimed that it was almost irresponsible at this stage to ignore the asset and not have it be part of one’s portfolio. He claimed:
As a way to have a pastiche of things that you should use your cash with, I’m all for it. I think it’s almost irresponsible not to include [it].
At press time, bitcoin is trading for just over $61,000, meaning it has fallen slightly from its recent all-time high of more than $63K.