Bitcoin is a good pure gamble, and those thinking about the cryptocurrency should just head to Vegas instead, CNBC’s Jim Cramer warned on Wednesday.
The cryptocurrency, which has surged more than 1,000 percent this season, broke above the $12,000 mark on Wednesday morning, according to industry site CoinDesk. Bitcoin’s rapid gains have prompted some marketplace individuals to warn of a bubble.
“It’s kind of like monopoly cash,” said Cramer, the web host of CNBC’s “Mad Money.” “Obviously, there’s persons who utilize it. Should anyone ever say anything poor about it, there’s such as this ‘bitcoin mafia’ that employs you. But it is an oddity that possesses nothing to do with us” as investors.
“It’s just clean gambling at this time,” Cramer said on “Squawk Box.” “After all if you would like to gamble, head to Vegas. Vegas is fabulous.”
“After all honestly, what’s the difference somewhere between bitcoin and racking your brains on the Super Bowl? After all it’s gambling,” he added.
Late previous month, Cramer said the cryptocurrency’s velocity is a sign that its surge is “parabolic,” and that could mean the rally won’t last.
Cramer’s remarks resembled those of closely adopted trader Art Cashin.
Cashin, the UBS director of floor operations at the New York Stock Exchange, said bitcoin has already reached “parabolic” levels, and it again some at the Government Reserve worried.
With Wednesday morning’s spike, bitcoin now has a total marketplace value of about $213 billion – more than twice Goldman Sachs’ marketplace cap.
In a separate CNBC interview Wednesday, Andrew Busch, chief marketplace intelligence officer at the Commodity Futures Trading Commission, addressed the new bitcoin futures items coming to marketplace in the coming weeks. “Our position as a derivatives regulator is to make certain the futures contract it isn’t manipulated. We’re going to do carry out that for sure.”
New Cboe bitcoin futures are placed to begin trading about Sunday. The CME agreements are slated to start on Dec. 18. Nasdaq, meanwhile, plans to start its own bitcoin futures as early as the second quarter of 2018.