CNBC Mad Money Host Cramer Joins the Bitcoin ‘Bubble’ Brigade
The host of CNBC’s Mad Money has said that bitcoin and junk bonds are bubbles and that the stock market is the only thing that has ‘real and obvious value.’
According to Jim Cramer, former hedge fund manager, best-selling author, and host of Mad Money, he doesn’t understand why people say that the stock market is dangerous and overvalued. In his opinion this is one area where a bubble is not taking place. For him, he thinks that bitcoin is a prime example of a what a bubble is, reports CNBC .
Speaking on Tuesday, Cramer said:
A year ago, one bitcoin was worth $750. You mean to tell me that’s not a bubble? You think that’s a safe place, a reasonable approximation of value versus the stock market?
Yet, while investment values may explode is certain areas, Cramer is of the opinion that the stock market illustrates prices that are actually true, adding:
As long as everything else is totally crazy and bubblicious, stocks are looking good. I don’t care where we are ‘in the cycle,’ I care where we are in the supermarket of investing, and right now, stocks are the only aisle with real and obvious value.
Cramer is not the only one who thinks that the digital currency is a bubble. Nouriel Roubini, an economics professor at New York University’s Stern School of Business, said earlier this month that bitcoin was a ‘gigantic speculative bubble.’ During a visit to Poland, ‘Dr. Doom,’ as he’s more famously known, said that it wasn’t a ‘serious method of payment’ or ‘a good way to store capital.’
At the time, he added:
I think that more and more countries will start to make cryptocurrency exchanges illegal like China did. New regulations will be adopted. So, this will find its end.
Fellow critics of the digital currency include Jamie Dimon, JPMorgan Chase CEO, who called bitcoin ‘a fraud‘ in September. This was later followed up by the Wall Street banker claiming that it was ‘worth nothing.’
Saudi Prince Alwaleed bin Talal, who was arrested earlier this month for money laundering, bribery, and extortion, has also added his voice to the critics list. In late October he said that bitcoin is ‘going to implode‘ due to a lack of regulatory supervision.
Bitcoin’s value in recent weeks has catapulted to new heights, scaling $8,000. Just yesterday it was reported that it had reached $8,315 for the first time. However, while critics will remain investors are continuing to pour their money into the currency, pushing its value even higher.
Featured image from Shutterstock.
