Renowned financier and CNBC host Jim Kramer sold half of his bitcoins to pay off a mortgage. He announced this on the air of the TV show Squawk on the Street.
According to Kramer, the average cryptocurrency purchase price for him was $ 12,000. Taking into account the current BTC rate, the financier was able to earn quite an impressive profit in just a few months. Let’s talk about the situation in more detail.
To begin with, let us recall that Jim’s desire to invest in Bitcoin became known in advance. In particular, we talked about this in September 2020, when the host spoke about his readiness to invest 1 percent of his own fortune in BTC. It was with this that his cryptocurrency journey began.
It is worth noting here the incredible growth rates of Bitcoin, which are truly changing the lives of its investors. In this case, Kramer received an increase in investments by more than five times, and this happened in just over six months. Naturally, getting such interest on less risky instruments – especially in a bank – will definitely not work.
Who sells cryptocurrency
Here is Kramer’s commentary on his decision, in which he shared his motives for doing so. The replica is given by Cointelegraph.
I know a lot of people will be angry with me, but I paid off my mortgage yesterday thanks to Bitcoin. It was like exchanging fake money for real currency. Now I have a house because I bought BTC. I think I won.
. @ jimcramer discloses that he bought a lot of bitcoin when it was around $ 12K. He says he sold half of it to pay off his mortgage yesterday. “It was like phony money paying for real money … I think I won.” https://t.co/L909N1g6x0 pic.twitter.com/hfkzTmIdWl
– CNBC (@CNBC) April 15, 2021
That is, the investor believes that his decision was a winning one. In fact, it is – and there are two reasons. Firstly, Kramer opened a position for 12 thousand dollars per BTC, that is, his investment amount has already grown fivefold. Secondly, Jim did not get rid of all the coins, which means he left the opportunity to take advantage of the growth in the value of the blockchain asset in the future. As a result, he earned and remained in position, which is very logical given the significant emission of the dollar.
We will remind, earlier Kramer openly criticized Bitcoin, but after a detailed conversation with the co-founder of Morgan Creek Anthony Pompliano, the financier decided to invest 500 thousand dollars in BTC in September last year. At that time, the price of the main cryptocurrency ranged from 10 to 12 thousand dollars. In total, Jim Cramer’s profit exceeded 425 percent and may increase in the future, since half of his bitcoins are still at the investor’s address.
As you can see, even the opinion of critics of the crypto market can seriously change against the background of bull run. Already in March of this year, Kramer became a guest of the next broadcast of the Pompliano podcast and thanked him for the guidance on buying Bitcoin. In addition, the financier also mentioned the recent IPO of the cryptocurrency exchange Coinbase in a positive way – according to his forecast, the value of COIN shares should rise to at least $ 600 in the foreseeable future. Coinbase shares began to plummet in value immediately after listing on the stock exchange and are now trading in the region of $ 342.
According to Kramer, due to the limited emission of Bitcoin and the hype around crypto exchanges, the digital asset market will continue to grow. This means that there will be enough people who want to make money, including on the growth of shares of cryptocurrency companies.
At the same time, the last week was remembered not only with positive news: on the eve of the central bank of Turkey published a ban on the use of cryptocurrencies as a means of payment for goods and services within the country. However, this event did not cause a strong panic in the market – the cost of Bitcoin fell by only 2 percent and, in general, practically did not react to the event.
The Central Bank of Turkey said that a ban on the direct or indirect use of cryptocurrencies and other similar digital assets was necessary because these assets “were not subject to any mechanisms of regulation and supervision of central regulatory bodies.” It is still possible to trade crypto in Turkey, local exchanges are also working. It’s just that now transactions on the exchange of real goods for coins are prohibited.
And that means, in fact, the ban will remain exclusively on paper, because it is impossible to stop the exchange of cryptocurrencies between users. Coin networks are decentralized, which means they will work as long as at least one user supports it.
We believe that the investor has indeed already won. He not only acquired real estate without any debts, but also retained half of the position. This means that if Bitcoin continues to grow steadily, Kramer will receive additional money. And now this decision seems more than correct.