Jim Cramer said earlier this week that he bought more Ether (CRYPTO:ETH), the world’s second-largest cryptocurrency by market cap.
“I like ethereum because people actually use it much more to be able to buy things,” the CNBC host said, noting the decentralized, open-source blockchain-based platform is “more of a currency.”
The announcement came several days after Cramer told his viewers that he dumped almost his entire Bitcoin (CRYPTO:BTC) position but would buy it back if the crypto hits a certain level.
The “Mad Money” host first invested in BTC towards the end of 2020 in fear of mass inflation.
“I went back into Ethereum because Bitcoin held [$30K],” the Bitcoin bull turned Ethereum fan said on “Squawk Box” on Monday. He further argued that, unlike Ether, Bitcoin struggles when it comes to defining its utility, be it a store of value or a currency.
Billionaire investor Carl Icahn, who has hinted at investing up to $1.5 billion in cryptocurrencies, believes Bitcoin, which has nearly halved in value since hitting a new all time high of almost $65K in April, can only be a store of value. In fact, Ether’s upcoming 2.0 launch is expected to make the platform significantly faster, less expensive, and more scalable.
Cramer’s Ethereum purchase follows his sale of almost all of his BTC last week. The dump was prompted by China’s crackdown on bitcoin mining over its environmental impact and the recent ransomware attacks.
According to Cramer, BTC “is not going up because of structural reasons.” That said however, the former hedge fund manager sees a buying opportunity if the crypto’s price dips around the $10K level.
BTC traded 3.62% lower at $33,673.26 at press time, while ETH, which set a record high of $4,350 a few weeks ago, thus more than quadrupling the $730 price at the start of 2021, traded 1.07% lower at $2,135.50.
Market Cap: $634 billion, $249 billion, respectively.