{"id":16856,"date":"2023-01-25T03:46:30","date_gmt":"2023-01-25T03:46:30","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/jim-cramer-says-avoid-crypto-stick-with-gold-for-real-hedge-against-inflation-and-economic-chaos-economics-bitcoin-news\/"},"modified":"2023-01-25T03:46:30","modified_gmt":"2023-01-25T03:46:30","slug":"jim-cramer-says-avoid-crypto-stick-with-gold-for-real-hedge-against-inflation-and-economic-chaos-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/jim-cramer-says-avoid-crypto-stick-with-gold-for-real-hedge-against-inflation-and-economic-chaos-economics-bitcoin-news\/","title":{"rendered":"Jim Cramer Says Avoid Crypto, Stick With Gold for ‘Real Hedge’ Against Inflation and Economic Chaos \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

The host of Mad Money, Jim Cramer, has advised investors to avoid crypto and stick with gold if they \u201cseriously want a real hedge against inflation or economic chaos.\u201d He added that bitcoin is too volatile to use as a currency. \u201cImagine business owners trying to conduct transactions with shares of Facebook or Google \u2026 it\u2019s ridiculous,\u201d he stressed.<\/strong><\/p>\n

Jim Cramer Prefers Gold to Crypto<\/h2>\n

The host of CNBC\u2019s Mad Money show, Jim Cramer, gave some investment advice regarding gold and cryptocurrencies on Monday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.<\/p>\n

He believes that investors should stay away from cryptocurrencies despite bitcoin\u2019s recent gains. Referencing charts interpreted by Decarley Trading\u2019s senior commodity strategist and options broker, Carley Garner, Cramer emphasized that investors \u201cneed to ignore the crypto cheerleaders now that bitcoin\u2019s bouncing.\u201d He proceeded to advise:<\/p>\n

\n

If you seriously want a real hedge against inflation or economic chaos, she [Garner] says you should stick with gold. And I agree.<\/p>\n<\/blockquote>\n

Citing Garner, the Mad Money host explained that the correlation between bitcoin futures and the tech-heavy Nasdaq-100 is very high, as shown in their daily charts going back to March 2021. This indicates that bitcoin behaves more like a risky asset rather than a stable store of value or currency, Cramer claimed, elaborating:<\/p>\n

\n

Imagine business owners trying to conduct transactions with shares of Facebook or Google \u2026 it\u2019s ridiculous, they\u2019re too volatile. Bitcoin is no different.<\/p>\n<\/blockquote>\n

Unlike Cramer, some people believe that bitcoin is a better hedge against inflation than gold, including venture capitalist Tim Draper<\/a> and billionaire hedge fund manager Paul Tudor Jones<\/a>.<\/p>\n

Cramer also cautioned about \u201ccounterparty risk,\u201d the potential for the other party in a transaction or investment to not fulfill their obligations. \u201cOf course, you can just own bitcoin directly in a decentralized wallet \u2014 that protects you from counterparty risk,\u201d he opined. \u201cBut if you ever want to use it for anything, the risk is back on the table. And as FTX\u2019s customers learned<\/a>, it can be devastating.\u201d<\/p>\n

The Mad Money host used to invest<\/a> in bitcoin, ether, and non-fungible tokens (NFTs) but he sold<\/a> all his crypto holdings last year. He used to recommend bitcoin alongside gold. In March 2021, he said<\/a>: \u201cI have, for years, said that you should have gold \u2026 but gold let me down. Gold is subject to too many vicissitudes. It\u2019s subject to mining issues. It\u2019s frankly subject to failing in many cases.\u201d<\/p>\n

He has also repeatedly warned about the U.S. Securities and Exchange Commission (SEC) doing a \u201croundup<\/a>\u201d of uncompliant crypto firms, advising investors to get out of crypto now<\/a>. \u201cI wouldn\u2019t touch crypto in a million years,\u201d he stressed<\/a>. Cramer often cited John Reed Stark, SEC\u2019s former head of internet enforcement, who recently said a \u201cregulatory onslaught<\/a> is just beginning.\u201d<\/p>\n

What do you think about Jim Cramer\u2019s advice? Let us know in the comments section below.<\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n