Jim Cramer, the host of CNBC’s Mad Money, recently announced that he used proceeds from his Bitcoin investments to pay off his mortgage. Cramer announced on Thursday, April 15, that he had paid off his mortgage the day before by selling half of his Bitcoin holdings.
On CNBC’s Squawk on the Street, Cramer said: “From the chart, I may be the only natural seller, but it was so great to pay off a mortgage.”
“It was like, kind of, phony money paying for real money. I now own a house—lock, stock, and barrel—because I bought this currency. I think I won!”He further added:
He claimed to have bought a large amount of Bitcoin when the price was about $12,000. On the 15th of April, the price of Bitcoin was $64,829.
Cramer appeared to imply that he followed his own investment advice, which includes trimming positions to take income after seeing significant returns. He claimed that half of his Bitcoin assets had been sold.
For a long time, Cramer has been a vocal supporter of Bitcoin. He explained his motivation for owning Bitcoin in February, describing the cryptocurrency as an alternative to a cash position, where you make nothing. As a result, he said that not including Bitcoin in a portfolio would be almost reckless.
Cramer said last month that his Bitcoin investments earned him more money than his gold investments.
While Cramer did not say how much money he made from Bitcoin purchases, he did say in other interviews that he invested $500,000 in Bitcoin after becoming dissatisfied with gold. That means his income from yesterday’s sales could total more than $1 million.
Why Is Bitcoin Beneficial?
Bitcoin continues to grow in popularity as more investors invest a portion of their funds in the cryptocurrency. The alternative store of value has been embraced by the majority of influential entrepreneurs. Michael Saylor, the founder and CEO of the tech company MicroStrategy, was the first institutional investor to bet on Bitcoin. Square, founded by Jack Dorsey, became the second company to invest in cryptocurrency, and Tesla, among other investors, became the first.
Many buyers, like Saylor, are taking out low-interest loans to buy even more Bitcoins. The explanation for this is that Bitcoin is a fairly secure investment.
Saylor recently held a seminar for institutional investors to help them understand the advantages of buying and owning Bitcoin in light of current business circumstances. Investors see Bitcoin as a solution to the economy’s instability, which is exacerbated by inflation and the declining purchasing power of fiat money.