CNBC Jim Cramer On Tuesday, he defended his stance on cryptocurrencies, saying he supported owning some cryptocurrencies as a hedge against government spending and ballooning deficits because “national debt concerns will never go away.”
“I’ve been a fan of cryptocurrencies for a long time, mainly because I knew there were a lot of investors who wanted to buy something that would protect them from government budget destruction,” he said. “While there is no evidence that cryptocurrencies can protect you from No harm done – at least not yet – but it’s a plausible story… Let’s just say that sometimes that’s all you need in this industry.”
Some on Wall Street believe that because Fixed supply of cryptocurrencyThis would be a reliable asset if federal spending continues to be excessive and the U.S. national debt continues to expand, causing the dollar to weaken. Cramer said the hedging argument makes sense to him. However, he admitted that cryptocurrencies are also fairly new And there is no proven record.
Cramer expressed doubts that the government can solve the debt problem anytime soon. He said lawmakers may have the ability to balance the budget, but they “lack the political will to do unpopular things.” Addressing the problem means making tough decisions about raising taxes or cutting spending, he said. Many politicians, he continued, tend to leave the issue to their successors.
“I think Bitcoin, Ethereum and even some other cryptocurrencies should have a place in your portfolio,” Cramer said. “Maybe one day, if the deficit is under control, I will change my attitude.”
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