KEY POINTS

  • Jim Cramer said he wants to invest 1% of his net worth in bitcoin
  • Cramer believes gold can be stolen
  • Cramer recently referred to Speaker of the House Nancy Pelosi as 'Crazy Nancy' in an interview

CNBC reporter and host of "Mad Money" Jim Cramer says he "fixated" on bitcoin and is willing to invest in the benchmark cryptocurrency.

Appearing on a podcast by Morgan Creek CEO Anthony Pompliano, Cramer declared his intention of putting 1% of his net worth in bitcoin, citing comparisons between gold and the benchmark cryptocurrency as a hedge against inflation.

Cramer said bitcoin has demonstrated it could rise in value. Bitcoin was worth zero in 2009. It rose to near $20,000 in December 2017 and is currently trading at $10,811. He also argued that while people thought cryptocurrencies get hacked, gold could also be stolen. 

Additionally, he fears inflation. "So this is why I am fixated on needing to own cryptocurrency, because I fear a massive amount of inflation, and I don’t have any. Gold will do okay, the house will do okay, those will keep me running in place. The idea of actually make money, well holy cow, I’ll take a shot at that with 1%," he continued.

Gold and bitcoin are correlated. Investors also go to both assets as hedge against inflation and as a store of value. Cramer said he is concerned with gold storage. "It’s dangerous because it can be stolen, it’s dangerous because they don't want to take it out of the bank, it's dangerous because they may forget where it is," he concluded.

Cramer is not the only famous personality who is considering to open a long position in bitcoin. Legendary investor Paul Tudor Jones recently announced he is putting money on the benchmark cryptocurrency, citing that bitcoin is currently the "fastest horse" and that it reminded him of gold in the 70s.

Publicly-listed company MicroStrategy also bought 38,250 BTC, worth $413 million, as a hedge against the declining ability of the dollar to generate yields. CEO Michael Saylor recently announced on Twitter that the company has completed its acquisition of the bitcoins. 

Cramer was recently in the news for referring to Speaker of the House Nancy Pelosi as "Crazy Nancy," a derogatory nickname used by President Donald Trump against her.

"What deal can we have, Crazy Nancy?” Cramer said, referring to negotiations on the coronavirus aid deal. Cramer quickly apologized, stating that he was only trying to point out the president's use of the nickname and not using it himself. The speaker took the comment in stride.

Bitcoin is the best known virtual currency, but it may face a real problem next week Bitcoin is the best known virtual currency, but it may face a real problem next week Photo: AFP / INA FASSBENDER