As I was watching "Squawk on the Street" this morning, I saw a familiar face.
Jim Cramer is frequently a guest on the CNBC segment. Today he was talking about Bitcoin. A topic he, as well as a host of others, have commented on quite a bit lately.
Today Jim Cramer was responding to comments made recently by Business Insider CEO Henry Blodget, who earlier stated that he could see Bitcoin trading for $1 million dollars some day or for less than a dollar.
Henry Blodget's video can be seen here:
<div style="position:relative;height:0;padding-bottom:56.25%"><iframe src="
style="position:absolute;width:100%;height:100%;left:0" width="640" height="360" frameborder="0" allowfullscreen></iframe></div>According to Blodget, Bitcoin has no intrinsic value currently so it's impossible to value. However, there is no cash flow to max it out either. So, basically it's upside is infinite while it's down side stops at zero. Many people are catching on to that fact and are picking up some as a speculative investment.
A trend that could continue for a long time says Blodget.
According to Blodget, the chart below is the most important factor in determining whether Bitcoin's price can sustain current levels and even keep going up.
It's a chart of Bitcoin's daily transactions.
His reasoning is that currently there aren't a lot of use cases for the currency, but as more and more use cases pop up, the demand for it will also keep increasing. As that happens the price will continue to go up and as the price goes up it will only increase the desire for people to figure out how to use it. A kind of self fulfilling price cycle if you will.
Jim Cramer's response to this was somewhat different.
Although Cramer also believes that Bitcoin could reach $1 million dollars someday, he differs in what is driving it right now.
Cramer says there are already real use cases. A major one coming from an area that you might not expect at first glance. Cramer has talked to a lot of businesses overseas and he is hearing the same sorts of things from many of them. They are all buying Bitcoin has a hedge against cyber criminals.
I actually wrote a piece on this very topic a few weeks ago. It can be seen here:
https://steemit.com/bitcoin/@jrcornel/an-unexpected-source-of-demand-for-bitcoin
It appears ol' @jrcornel was a couple steps ahead of the wily Jim Cramer. ;)
Cramer believes that these companies are providing real world demand for the coins, which is different than a bunch of speculators buying them with hopes of selling to someone willing to pay a higher price down the road. The greater fool theory.
The Greater Fool Theory can be defined as:
"The price of an object is determined not by it's intrinsic value, but rather by irrational beliefs and expectations of market participants. A price can be justified by a rational buyer under the belief that another party is willing to pay an even higher price. In other words, one may pay a price that seems "foolishly" high because one may rationally have the expectation that the item can be resold to a "greater fool" later."
Adam White, (head of Coinbase's digital currency exchange) was quick to pour cold water on Cramer's ideas.
Adam immediately responded to Cramer's comments saying that he feels the surge in Bitcoin is unlikely to be mostly due to the buying by companies in order to pay cyber-ransoms.
His exact words were these:
"I think that's a stretch"
I tend to agree with Adam on this one. I do think companies are certainly accounting for a portion of the demand, but I don't think they are the number 1 driving force right now.
However, a recent survey in Europe showed 1/3rd of all companies polled had purchased Bitcoin in the last year as a hedge against a potential cyber attack.
That number is a lot higher than I would have originally guessed and I am sure that is partly where Cramer is coming from with his ideas.
More and more people are joining the club.
Either way, it appears the club is growing.
Jim Cramer now joins the likes of Wenses Casares, Kay Van-Peterson, Henry Blodget, and a host of other analysts and commentators that think Bitcoin and the cryptocurrency space could go a lot higher than current levels.
https://steemit.com/bitcoin/@jrcornel/want-to-become-a-bitcoin-millionaire-here-s-how
Their predictions can be read in more detail in the posts linked above.
Hopefully they are right!
Stay informed my friends.
Sources:
http://www.cnbc.com/2017/06/07/cramer-says-its-possible-bitcoin-could-reach-1-million-one-day.html
https://en.wikipedia.org/wiki/Greater_fool_theory
Image Sources:
http://www.cnbc.com/2016/11/08/cramer-remix-your-post-election-stock-market-playbook.html
http://www.coindesk.com/data/bitcoin-daily-transactions/
Follow me: @jrcornel
I would like to see Cramer's take on Steemit. That would be the day.
Interesting to see Cramer's take on Bitcoin.
I watched his show for years and have a great deal of respect for his assessment.
Great post as always @jrcornel
Funny, I was thinking of posting roughly the opposite.
It's dismaying to see Cramer on this list. He's been a contrarian indicator, and ...well, "out there". I feel he's what you'd get if you gave MSNBC the South Park "Sexy Action News" Treatment:
I profited from watching Cramer's show.
Are you unconcerned that his reasoning for "BTC $1 million" is ludicrous, and demonstrates he has no idea what he is talking about?:
"I think it could because the European banks are frantically trying to buy them so they can pay off ransomware. It’s a short-term way to be able to deal with cybersecurity. It is the way to pay off the bad guys,” Cramer said on “Squawk on the Street."
Ahem,
"In the case of WannaCry ransomware, the biggest ransomware attack in history, the distributors earned less than $100,000. That is only 0.0012 percent of the European Bitcoin exchange market."
Absolutely I'm concerned and take everything Cramer says at face value.
His "BTC $1 million" is ludicrous and I give that stament no value whatsoever.
I just love Cramer's crazy style and he and his show put the spotlight on countless potential plays in which after my own research I made. I only stopped watching because I hired a financial advisor who I know and trust to manage our nest egg so I can focus 100% on business and family.
I see a lot of people here that have an acc est of 1m roughly. Sadly most of the famous people don't bother following or contributing to their followers which is a bit sad.
Buy early, and early is still now, and any ransomware attacks 5 years down the line they can manage.
At $1,000,000 bitcoin, the smallest unit of bitcoin a Satoshi which is 1/100,000,000 th of a bitcoin would be worth .01 USD a penny. Looks like it was meant to be. https://steemit.com/money/@natxlaw/million-dollar-bitcoin-here-is-how-it-happens-satoshi-is-the-new-penny
That is very interesting. Thanks for sharing!
1M someday? oh please let that someday come sooner
The problem with the $1M Bitcoin is that.....thats a number using the US Dollar as the base currency. What does "A Million Dollars" MEAN 10 years from now? What if a loaf of bread costs $100 by then? Better to ask yourself how much BTC you need in order to be financially free...today. And THAT number is much less than a million bucks. Try to get THAT much. Because $1M is really just a cultural number that means success, wealth, etc. A Freedom number is much more important and is much more realistic and useful to attain.
hmmm.. so true
but to be financially free - better invest whatever we've gained in BTC in plenty of passive income resources - the kinds that would outnumber our expenses
how much BTC do I need to be FF? A lot!
you there already?
No problem, thanks for the upvote!
Well, BTC already died 170+ times, so yes USD 1.000.000,- is in the cards. Just to bad Mark Cuban is missing out LOL!!!
I think Cuban is just jealous. He is a clever person, but he is lost on this subject.
Yep, here is the proof:
~this photo is taken in the future :D
haha so true!
Not missing out, he invested 20 bucks in Bitcoin.
Disclaimer: I am just a bot trying to be helpful.
Put a few drinks in Mark Cuban and you'd see him slurring his words and ranting about HODLing his blockchains...he's in it, in secret. At some point he'll come out, trying to be all expert on the topic. Cuban got lucky, he's no genius.
I am not a crypto-maniac and am actually very new with that. My opinion on the topic, that may be very naive, os that the value of a currency is connected to its usage. As long as cryptocurrencies will have a real usage (for instance, buying some goods), they will be valued. In the case of a speculation-only usage, then I would tend to agree that the value is random.
Yes. I think that is exactly what both of these guys were saying. They both agree on that, but one thinks there isn't enough usage yet and the other thinks there is starting to be.
Ooh I see. I missed this subtlety :)
Thanks for precising!
He was once against bitcoin as in a clip in youtube and now he changed!
I can hear the corny sound effects right now. "BUY, BUY, BUY!"
When that happens it will be time to head for the exit!
Oh Oh. Cramer is talking Bitcoin up? Get ready for a sell-off..
I see I am not the only one who partakes in a little CNBC, thanks for the share buddy! The morning shows I don't really catch. Wonder if they will talk about BTC again on Fast Money this evening.
Probably. Brian Kelly mentions it quite a bit. By the way, Fast Money is one of the best shows on TV! :)
Fast Money is about the only thing I watch on CNBC of late. Especially Friday with the Options Action segment.
Btw, they talked about BTC on Fast Money today, calling AMD a BTC proxy as they are allegedly the only one that makes some RX chip used for mining, of which they sold out of.
I recorded the blurb I'll try and post it.
Fascinating stat about the UK companies stockpiling Bitcoin, but something tells me that businesses couldn't have that large of an impact of the value of the currency. There has to be more going on. Will it hit $1,000,000 some day? Entirely possible. I'm just all about getting rid of cash!
Nobody could have ever expected it to rise to $3,000. I invest first @ $600 but only invested largely at $1,000.
JIM CRAMER LOL .... Mr. Hype Man! You guys think he even owns any Bitcoins? :)
Of course not. That's like saying he owns every stock he talks about on every show he is on, including his own...
1Million :O ! Wow that sure is a big number.
not compared to one trillion the number of us dollars they print up more than one time a year hah lets just say lol!
Wow. I wrote about this 2 hours ago:
https://steemit.com/bitcoin/@bitbybit/even-cramer-thinks-bitcoin-could-go-to-usd1-million-usd
and I have a fraction of the views/votes/payout.
Lame.
I will upvote your post and follow!
Thank you!
There is a lot of bitcoin turbulance with soft forks, hard forks, segwits, 2mb. I cant see clear with this storm
no storm, bitcoin price stable around 3000 now! we on our way to 10,000 by summer 100,000 by end of year...u never seen a real deflationary currency before OR a truly one world currency....
thats what NOONE is talking about...what we WERE ALL TAlking about during 2009 financial crisis!!!! the OONE WORLD CURRENCY hah what else is bitcoin and all cryptocurrency we just never thought we would have 900 of them ...
we never saw the altcoins comin lolololol
Great post! I hope we get another dip in Bitcoin soon so I can buy some
No guarantees, bro. I hope it does too, but get a little more every so often
A Jim Cramer nod pretty much "assures" lower prices for Bitcoin. But he can't be given full credit when it happens as the technical sentiment indicators are saying Bitcoin isn't even within the earth's atmosphere any longer...as far as price goes. You'll get a nice pullback. A bigger pullback than any of the local advocates are expecting I'm sure. My "advice" would be to just ignore any commentary about future price movements from anyone who paid $500 or less per coin. They aren't even in a position to give a "realistic" opinion about whtehr or not bitcoin is overpriced or not. Bitcoin has gone through 1 50% pullback in the past 5 years, after Mount Gox. With a move like it just had, for someone to say >>> "I don't see where bitcoin has gone too far too fast" just proves they have "zero" understanding of how markets work. I'm posting pricing updates on "actual" bitcoin at my blog using the U.S OTC market exchange traded "proxy" GBTC to determine targets. Don't be surprised to see something like this happen to bitcoin soon.
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=btsc&x=57&y=15&time=18&startdate=1%2F4%2F1999&enddate=2%2F18%2F2017&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1024&lf2=2&lf3=8&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11
I predicted a move back to sub .05 in it last week. I'm confident my downside price targets for GBTC (and thus "actual" bitcoin) will be acheived too.
I would love this so much more if Jim Cramer wasn't a Fucking idiot in every usage of the word
Except that he is a millionaire by his own making... but other than that aspect ;)
Great blog!
Normally when the masses start taking note of an asset its time to sell up and move on. Are cryptos different? I ask as this is what happened to gold....
Or unlike gold, because an individual can own 'bits' of bitcoin, does this mean that the bitcoin market can keep going up for many years to come?
We may see this as a plus, because they are saying it could hit 1 million mark but be sharper their objective is just negative association.....be careful what you promote because you would be apart of their propaganda machine associating cryptocurrency criminal element...thanks for the information but sharpen up their agenda is quite evident.... f.... this BS about rise being linked to hedge against cyber criminals.....THEIR NEXT STEP WOULD BE ABOUT THE NEED FOR REGULATION, YEP REGULATION BECAUSE WE HAVE TO BREAK UP THE CRIMINAL NETWORK....be sharp and know the theme of what you are promoting
Wow... and I thought I was being ambitious when I wrote about the possibility of $250,000 BTC, a couple of days ago.
Who knows where it will go... and who knows if it will actually be Bitcoin that shoots the moon... or a late comer, or even a new currency none of us even know... yet.
One of the reasons I like the chances for Steem/Steemit is that we are not only building a currency, we are building an economic environment; creating actual reasons for the Steem token to exist... and the more reasons we can create, the more solid our foundation will be...and the more attractive Steem will become to investors.
I would love to see more people joining the #steemboost idea! This will be awesome!
FINALLy a perfect place to show you my Bitcoin is going to one million dollars animation Song that I made with ditty app ! the thing is hilarious, and all those Gifs were automatically added from just the words! and the song was made up automatically! crazy right u can make instant steemit video ads with it!
The fact that Cramer and Seeking Alpha are now taking Bitcoin seriously is huge. It almost does not matter what they say about it. By their own serious, non-mocking coverage of bitcoin, it boosts awareness and value. Thanks for sharing.
and i just joined the club
was thinking its tooooo late already ^^
gonna follow you, great article
Very informative information that shows us that we are on the right track and that we are pioneers in this cryptocurrency universe. Let's keep steeming!
please upvote, reply,resteem and follow @victorvazco and thank you for being awesome!
I pulled out of bitcoins 3 weeks ago took my profits and bought gold and gold miner stocks. Bitcoin is a great big bubble and capital controls will out right kill crypto currencies. I do the opposite of what Jim Cramer says, the emerging markets are currently a far better performer then the USA stock market. As the dollar continues to go down emerging markets go up. USA markets are a great big bubble inflated by quantitative easing. All bubbles burst we have seen it before twice in the last 17 years. Its gonna happen again.
You know, the fact that Cramer even mentioned Bitcoin is HUGELY bullish for the whole Crypto Currency space. The United States is amazingly unaware that crypto exists at all - I work at Trader Joes, and for the last 4 months I have been asking people, "cash, card, bitcoin?" - just to see a flicker in anyone's eye - just to see if anybody out there on Main Street has any idea that the Mother of all Bull Markets is occurring.... Right now!!! And you know the findings of my informal survey, are shocking to me but may not surprise you: NOBODY has ever responded in a way that leads me to believe they have any idea what I am talking about or what Bitcoin is. That's right - Nobody, and I must have asked well over 1000 average everyday people. Do you know what that means? There are billions-trillions whatever...let's say A LOT of money on the sidelines. Is there a bubble in the Crypto Space right now? Maybe - but it is the first of hundreds of bubbles that will follow. As mass-adoption in the US begins to happen 3-5 years from now, these poor everyday fiat loving nice people will be buying Bitcoin at over $10,000 and Etherium at over $2000. Plenty of people watch Jim Cramer's Mad Money everyday desperately searching for the next Nvidia... and they don't know that there are Crypto Coins all over the place way outperforming Nvidia, Apple, Google and Amazon. And just by saying it out loud on his show... "Bitcoin" in whatever context, possibly woke a few people up and sent them to their computers to search and study and maybe hopefully discover this amazing Blockchain based bull market that is just beginning. Yes it is a voilatile space. There will be big pullbacks, flash crashes, hacks, government scares, and the "bubble" may pop for a short time, but it will quickly re-inflate, and as more and more everyday people become aware of the potential returns the Cryptos space offers and dip their toe in... it will begin to spread, and as time goes on and those of us who are involved become more and more wealthy, the general public will gradually get in and big money will follow pushing up already fully valued coins higher than we can now ever imagine - In my opinion that is when there will be a real bubble, and that is when us early investors should sell our coins to the newbie Main St people and go enjoy our lives and hobbies, as we probably won't have to work anymore.
I love Cramer. Super Pump will come from Mr. Cramer soon.
Great article! I hope it goes past 4k this year :)
Hoping for a dip and a chance to buy some more crypto but these guys just keep the people coming spiking the price.
How the wealthy get rich and how you can copy their mindsets to gain leverage in life: Posting 42 inspirational articles everyone can relate to. Following all steemians interested in the project:
Blog: Above average - The 42 Millionaire Shortcuts
Very good posts..
I like
Upvote & Resteem
The world is full of lunatics. so do not worry and keep accumulating bitcoins.
I truly hope all these public figures joining in doing JINX the Bitcoin rise. Is it terrible for me to wish that they continues to remain clueless and stayed away?
thank you for this informative post ;)
Nice Posting! Just upvoted and followed you, can you please do the same for me?
Thanks a million!
Best to ignore all the talking heads when it comes to Bitcoin, many have hidden agendas.
Whenever Cramer recommends something though, its usually best to take it with a grain of salt. At the very least.
Cramer talking and promoting Bitcoin this evening on his 6pm eastern show. Personally, past Super Thursday ( British vote, Comey Testimony, ECB rate decision) 6-8-2017, I suspect all the fear trades take a break.. including Bitcoin, gold, US treasuries, and Yen....
1 bitcoin may reach $1,000,000.
But what will the $ be worth! after Quantitative easing and hyper inflation!
Very interesting new Steemians and good post!
when it goes big i hope to have some
how hasn't this Cramer character not had a heart attack by now.
Another good post.
I just came from @hanshotfirst's post where he used the word whippersnapper, and here you are saying ol' and wily, lol.
I think I might actually know more about bitcoin than I do about basketball however. I'm kind of proud of that hee.
Nice writeup, and I appreciate that you put your sources in your posts. Followed.
It would be interesting to see how much BTC he owns to back up his comment of BTC at $1,000,000
Very interesting write up