Jim Cramer, host of CNBC’s Mad Money, defended his support for cryptocurrency on Tuesday, recommending bitcoin and ethereum as portfolio assets amid concerns over rising U.S. national debt and ongoing government spending challenges. Cramer is a TV host, author, and former hedge fund manager.
Noting that “national debt worries are never going to go away,” Cramer highlighted the appeal of digital assets, noting:
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.
“While there’s no proof crypto can protect you from anything — at least not yet — it’s a plausible story…Let’s just say sometimes that’s all you need in this business,” the Mad Money host added.
Cramer elaborated on the challenges posed by the country’s mounting deficit, pointing to legislators’ reluctance to address the issue. He argued that while solutions like balancing the budget exist, political unwillingness to enact unpopular measures — such as raising taxes or cutting expenditures — leaves the problem unresolved.
Cryptocurrencies, with their fixed supply, could serve as a hedge against a devalued dollar, he said, aligning with a perspective shared by some on Wall Street. However, Cramer cautioned about their novelty and lack of a proven track record, urging caution. Still, he maintained:
I think bitcoin, ethereum and maybe even some other cryptocurrencies deserve a spot in your portfolio, too.
“Maybe, one day, if the deficit gets under control, I’ll change my tune,” he opined.
Cramer has exhibited a fluctuating stance on cryptocurrencies over the years. In December 2020, he purchased bitcoin and later sold most of his holdings by mid-June 2021, reportedly using the profits to pay off a mortgage. Following the 2022 crypto market downturn, Cramer expressed skepticism toward digital assets. However, by early 2024, he acknowledged Bitcoin’s resilience, stating, “you can’t kill it,” and described its resurgence as a “remarkable comeback.”
