Jim Cramer, former manager of hedge fund Cramer & Co. and host of Mad Money on CNBC, backed investors who buy cryptocurrencies while understanding all the risks.
“As long as you recognise the very real possibility that all investment arguments in favour of cryptocurrency are based on the greater fool theory, you have my blessing to speculate on this,” said Cramer.
The host acknowledged that he had not bought Bitcoin or Ethereum as an inflation hedge. He said he was “just gambling”.
“I was just playing on crowd psychology, and I have no idea why these things have risen, except that there are many overenthusiastic people who want to buy high and sell higher,” added Cramer.
He called owning cryptocurrencies ‘normal’ if people view them through an investment lens.
“I’m sticking with my Ethereum, because I believe there could be millions of greater fools. I think it’s a good bet,” concluded the CNBC host.
Cramer reduced his ETH holdings in May after the coin reached a historic high of $4350.
In June, he sold a large portion of Bitcoin after news of mining restrictions in China, and later spoke of investments in the second-largest cryptocurrency.
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