Don’t Invest in Bitcoin If You Don’t Know the Risks, Says Cramer
After CNBC’s Jim Cramer has observed bitcoin futures’ second day on the CBOE, he made the following statements: “First, let me say this. As long as it’s not against the law, I am supportive of anything that makes people money. Bitcoin has made people fortunes,” continuing with “Second, I hate it when experts try to keep other people out of securities or instruments that make you money.”
Cramer strongly dislikes those hedge fund managers that discourage individual investors from getting involved in the stock market because of its risks.
He said he made the right choice by not listening to the people who warned him that the stock market was too dangerous and too expensive.
“Along comes bitcoin and its related cryptocurrencies, and while I’m concerned that they’re too disorganized, too dark, too dependent on software that then can be hacked, I don’t want to begrudge anyone from trying to profit from anything,” added Cramer.
The bitcoin futures, which began with the CBOE on Sunday, will be continued by the CME and Nasdaq, and could actually help smoothen out bitcoin’s volatility, says Cramer.
He also added that futures may direct firms in the right direction in finding bitcoin’s price and how much it should be worth, and that an „orderly market” will aid investors with this largely unregulated currency.
But with bitcoin’s presence disturbing the stability of gold, he advises those that are interested in buying to be careful and observant of bitcoin’s actions.
“So far, I’m encouraged by the discipline that the new bitcoin futures seem to be injecting, although I’d like to see a lot more discipline,” Cramer said. “Look, I never want to stand in the way of anyone making money as long as they know the risk. So if you want to put your money in bitcoin, please, ask yourself, do you know the risk? And if you do, be my guest. I’m not stopping you. If not, though, maybe you should be on the sidelines, because my first rule [is] do no harm,” said the “Mad Money“ host.