Financial analyst Jim Cramer endorsed owning cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD as a safeguard against government overspending and an ever-increasing deficit.
What Happened: Cramer defended his pro-cryptocurrency stance, stating that the concerns over national debt are perpetual, CNBC reported Tuesday.
“I think Bitcoin, Ethereum, and maybe even some other cryptocurrencies deserve a spot in your portfolio, too,” the host of CNBC’s popular Mad Money show said. “Maybe one day, if the deficit gets under control, I’ll change my tune.”
Despite the lack of evidence that cryptocurrency can protect against financial risks, Cramer believed it to be a “plausible” narrative.
“I’ve liked crypto for a very long time, mostly because I know there’s a huge constituency of investors who want to buy something that can protect them from our government’s busted budget,” Cramer said.
He added that while cryptocurrency is relatively new and lacks a proven track record, it could serve as a solid asset if the U.S. national debt continues to devalue the dollar due to excessive federal spending.
Cramer expressed doubt that the government will be able to address the debt issue in the near future.
See Also: Dogecoin Gets Its First Exchange-Traded Product In Sweden
Why It Matters: America’s federal debt has leaped past $35 trillion in 2024, casting doubt on its long-term financial stability. In 2024, the government has spent $6.75 trillion, leaving the nation with a $1.83 trillion deficit in just one year.
Citing the federal debt crisis, the world’s largest asset manager, BlackRock, strategically advocated for Bitcoin as a potential hedge against future events affecting the U.S. dollar.
Meanwhile, Cramer has been doubling down on his cryptocurrency advocacy. Last week, he revealed owning Bitcoin and called it a “clear winner.”
However, since his bullish take, the apex cryptocurrency, which was approaching $100,000, has pulled back to $92,000.
For the uninitiated, the “Inverse Cramer” phenomenon hinges on the belief that doing the opposite of what Cramer advises could lead to profits. There has been no definitive proof, though, of counter-trading Cramer’s predictions being a profitable strategy.
Price Action: At the time of writing, Bitcoin was trading at $92,420.98, down 1.98% in the last 24 hours, according to data from Benzinga Pro.
Photo by s_bukley on Shutterstock
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