The host of Mad Money on CNBC, Jim Cramer, recently spoke out against the cryptocurrency Bitcoin. Cramer said that in his opinion, Bitcoin and other cryptocurrencies represent a massive risk for investors, as there is so much uncertainty over the future of their value. For those who have invested in Bitcoin, this is probably not the kind of news you want to hear from a financial analyst. However, with the value fluctuating so much, it’s easy to see why he’d say this.
A financial analyst has likened investing in Bitcoin to gambling, due the massive fluctuations in value. He went so far as to suggest visiting Vegas instead.
Bitcoin Value Fluctuates Wildly
So far though, the massive fluctuations in the value of Bitcoin has benefited those who have invested in it. The value has increased 2200% when compared to the 7th of December 2016. Some places were reporting that a single coin was worth $18 000 recently. However, it quickly dropped to below $17 000 shortly after. Due to these massive and very rapid changes in its value, Cramer believes that people should avoid cryptocurrencies.
He likened it to monopoly money and said that purchasing cryptocurrency is pure gambling. He then went on to say that if people want to gamble, they should instead visit Las Vegas. Since its inception, many have criticized Bitcoin, as it has very little real-world application. However, we’re sure most people wish they could have bought a few hundred, or thousand, at the beginning.
Bitcoin Still Popular with Gamblers
Many retailers still do not accept Bitcoin for payments. In fact, the number of retailers that do accept it has actually started to decrease. This is largely due to the large changes in value, as well as transaction fees, which have become more expensive. One area which has embraced this currency, though, is online casinos.
Because using it is completely anonymous, many players have started using the cryptocurrency for their online gambling. This has led many online casinos to start accepting it, including Bovada, Ignition, Slots LV, and more.
We will certainly be watching the value with a very keen interest going forward. We really just hope this is not a bubble that is about to burst.