Bitcoin and other cryptocurrencies like Ripple are “for real”, TheStreet’s founder said, however, the speculative nature of the markets made it difficult to pin down an accurate value for any cryptocurrency.
Speaking on his CNBC show, Cramer said: “I believe they’re for real. I don’t see them going away any time soon.
“However, that doesn’t make them a sound investment.
“I’m not crazy about any of the different ways to speculate about cryptocurrencies, whether we’re talking about derivatives that don’t sync with the value of the thing they actually represent, or tangential equities, like an Overstock, or a Square or AMD or Nvidia.”
Cramer said he would change his mind if digital currencies are treated as a legitimate alternative to currencies and that it might not be too far off.
He said: “Look, I’ll change my mind and become more positive, the moment I see that cryptocurrencies are being treated like defacto currencies – a la gold.
“That could potentially happen if Goldman Sachs makes a solid two-way hedging market of some derivative, maybe not bitcoin but the others.
“Although even then I think you need to be careful but I understand that Goldman is trying to put together a hedge desk.”
Bloomberg reported last month that Goldman Sachs is setting up a trading desk to make markets in digital currencies such as bitcoin, citing sources with knowledge of the strategy.
The bank aims to get the business running by the end of June, if not earlier, two of the people said. Another said it’s still trying to work out security issues as well as how it would hold, or custody, the assets.
Goldman Sachs would be the first large Wall Street firm to make markets in cryptocurrencies, with many financial institutions still sceptical about the cryptocurrency craze.
Bitcoin fell 3.84 percent to $14,395.41 at 14:39, in London, according to CoinDesk.
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