After selling most of his Bitcoin, CNBC’s Jim Cramer says he’s placing his bets on the leading smart contract platform Ethereum (ETH).
In a new Squawk Box interview, Cramer explains why he’s now turning to ETH instead of the largest cryptocurrency, Bitcoin (BTC).
“I went into Ethereum this time. I went back into Ethereum because Bitcoin held $30,000. I like Ethereum because people actually use it much more to be able to buy things, and I’m gonna continue to buy Ethereum.
I just think it’s got a little more game because, when you go buy an NFT (non-fungible token), anything like that, everybody wants it in Ethereum. It’s more of a currency.”
In March, Cramer announced that he purchased $500,000 worth of Bitcoin after seeing gold’s lackluster performance. However, he told CNBC last week that he sold nearly all of his Bitcoin after the crypto market broke down in May, citing “structural reasons.”
“I’ve got the Tether weak link. I’ve got – what the heck is going on? This thing’s going down if it can’t be mined. I’ve got the possibility that Colonial isn’t the only ransomware.”
The Tether (USDT) stablecoin recently sat in the hot seat of the crypto space as users are raising questions over the backing of the digital asset. Combined with China’s harsh stance on Bitcoin mining and concerns over US government regulation on the leading crypto asset in light of the recent cyberattack on US pipeline operator Colonial Pipelines, Cramer says these risks are enough for him to part with most of his BTC holdings.
“I know Tom DeMark, great technician, says ‘$30,000 intraday. Look out. Gotta hold.’ [$30,000] may be the buy point. I’m not going there. Sold almost all of my Bitcoin. Don’t need it.”