The current rally in Bitcoin’s price has drawn the attention of a number of people in financial media. However, there is a good chance that the asset has managed to notch the most prominent endorsement as yet. Jim Cramer, one of the most influential voices in finance media and host of Mad Money on CNBC, also threw his weight behind Bitcoin earlier this week and its chances of success. A former hedge fund manager, Cramer said in a tweet that Bitcoin can be excellent alternative to gold. The media personality said that he had always believed this fact and stated that investors shouldn’t shy away from the crypto, despite its increasing price.
Cramer has never been shy of expressing his interest in alternative assets. Speaking to Anthony Pompliano, the co-founder of Morgan Creek Digital, the TV show said that he had made significant investments in gold, and even referred to himself as a ‘gold bug’. However, he also added that he fully supported cryptocurrencies and believed in their ability to work as an inflation hedge. He also highlighted that Bitcoin had a lot of potential of becoming the primary hedge against inflation in the future. As the asset holds a greater degree of attraction for the younger generation, most of them are likely to invest in Bitcoin rather than gold.
It should be noted that Cramer is not the only one to have favored Bitcoin, as opposed to gold. The Chief Investment Officer for fixed income at BlackRock, Rick Rieder also spoke to the CNBC on Friday and said that Bitcoin would end up taking gold’s place eventually. Currently, Reider’s asset management company is managing a total of $7 trillion in assets and he highlighted the increased millennial affinity and institutional interest in Bitcoin. The investment expert also added that Bitcoin’s functionality was far more advanced than gold, as it doesn’t just act as a store of value.
While Cramer is promoting the pioneer cryptocurrency, some warning signs have been highlighted by a fellow analyst at CNBC. Brian Kelly, one of the anchors of the news network show, said that he was rather skeptical about asset’s trajectory in the future. Speaking to fellow ‘Fast Money’ traders, Kelly said that he had been and still is a Bitcoin bull. However, he said that he was not losing his objectivity over the current rally, which he believes, will not last for long.
He said that they had already begun to see speculative coins, which are under $5, to increase by 30% or 40% in a day. These are some of the things that only happen in the short-term or medium-term. Kelly said that the increasing influx of retail investors and a spike in wallet addresses could also be warning signs. He said that increasing retail trade activity would boost interest rates on margin trading. The TV personality did say that he believes Bitcoin will reach the $50,000 mark in a year. But, Bitcoin’s current market price of $19,000 would first drop to $12,000 before it consolidates.
