CNBC’s veteran Jim Cramer claims that the $3 trln relief package made him change his mind about Bitcoin, the world’s largest cryptocurrency by market cap.
“For a long time, people would say ‘well, how about Bitcoin’, and I said ‘well I don’t trade coffee and I don't trade cotton, and I don't trade bitcoin,’ and that sufficed for a very long time. It worked until the $3 trln dollar package because we don't have that. We don't have three trillion in this country.”
A hedge against “massive” inflation
As reported by U.Today, Cramer finally got into Bitcoin earlier this month after dismissing the crypto king for years.
He even predicted that the top crypto is going to be annihilated following the launch of regulated futures in late 2017.
“Once this thing starts trading the futures, they are just going to kibosh it. You’re going to see a lot of shenanigans.”
The sweeping $3 trln stimulus bill that was unveiled by Democratic lawmakers back in May made Cramer “fixated” on needing to own crypto because he fears a massive amount of inflation.
Now that the U.S. Federal Reserve made a historic decision to relax the two percent inflation target, the debasement of the dollar looks increasingly more likely.
Cramer’s kids will not understand gold
Cramer also bets on gold, real estate, and other assets for diversification purposes:
“I can't have all my eggs in the U.S. basket.”
However, while Cramer himself is bullish on the gold he believes that his kids will not share his sentiment:
“I’m not a, you know, a paid spokesman for why I need gold or why I need crypto but I just need something that my kids will understand as a hedge to inflation, and they will never understand gold.”
He further explains they his kids perceive gold as dangerous because it can be stolen, or they can simply forget where it is stored.
The stock-picking oracle says that his kids would feel much more comfortable owning Bitcoin than gold when they turn 35.