CNBC’s “Mad Money” host Jim Cramer addressed criticism regarding his stance on cryptocurrency, particularly Bitcoin, in a recent segment. He pushed back against accusations of “calling the top” by recommending crypto, emphasizing his long-term bullish outlook. Cramer explained that he views crypto, especially Bitcoin, as a hedge against potential government mismanagement of the national debt and the possibility of extreme measures like a forced buyback of Treasury bonds at a discount.
Cramer acknowledged the lack of concrete proof that crypto can protect against such scenarios, but argued that the narrative surrounding it is compelling enough to warrant inclusion in a portfolio. He drew parallels to FDR’s 1933 Executive Order 6102, which confiscated gold from American citizens, highlighting the precedent for government intervention in times of crisis. While he still holds gold as a hedge, he expressed concern about its susceptibility to confiscation.
The “Mad Money” host pointed to the consistently high levels of national debt and the lack of political will to address it through unpopular measures like tax increases or spending cuts. He argued that this ongoing concern reinforces the need for a hedge like crypto. Cramer also criticized the Obama and Trump administrations for not taking advantage of historically low interest rates to issue longer-term debt, which he believes would have saved significant money in the long run.
Despite Bitcoin and gold being near all-time highs, Cramer stood by his recommendations, reiterating his belief in their long-term potential. He concluded by dismissing the online criticism he received, stating that he would return to his practice of ignoring comments to avoid unnecessary aggravation.
