Jim Cramer recommended that the unknown winner of the $ 731 million Powerball jackpot on Wednesday, based in Maryland, allocate 5% of his fortune in bitcoin.
“You know what, if you won the lottery – Yes, I will say: 5% in bitcoin,” Cramer said Thursday night on his Mad Money program.
His investment advice, of course, had a few caveats: don’t buy bitcoin at once, don’t buy it over the weekend. “Crypto can be incredibly volatile,” he said on the day that bitcoin plunged 13%.
Cramer identified bitcoin as a “new and important store of value”.
His words echoed the philosophy preached by MicroStrategy CEO Michael Saylor, the technology executive with well over $ 1 billion in corporate money invested in bitcoin. Saylor called bitcoin the ideal storage mechanism for humanity.
Cramer, who owns bitcoin, is not exactly a disciple like Saylor of the cryptocurrency that some claim is equivalent to a religion. Cramer has expressed concern about the market’s anonymity and erratic negotiations on his CNBC program in the past.
Cramer formulated his recommendations, which also included allocations in art, real estate and physical gold alongside more conventional pieces like stocks and bonds, tailored for a super-rich investor in a world where hyperinflation reigns.
“If you are already rich, you need to be concerned with inflation in the same way that Superman is concerned with kryptonite. Because it’s the only thing that can really end you. And considering the way we’re spending as drunken sailors in this country, it can be a problem, ”said Cramer.