Jim Cramer, the mad host of ‘Mad Money’, called Bitcoin ‘Monopoly Money’, and suggested that the futures market ‘will annihilate’ the value of cryptocurrency when it opens. The comment came during a segment broadcast on CNBC.
Cramer is not a fan of Bitcoin, despite, at one point, mentioning that the price could go to $ 1 million. He believes the current trend is a bubble that has been pushed to new heights by traders to reduce value once the futures market is open. According to the famous investor:
“I think short selling will just wipe out people when you start trading them. When this thing starts to trade futures, they’re just going to honk them. You’re going to see a lot of shenanigans.”
While Cramer has voiced the concerns of many on Wall Street, others, including industry insiders, disagree. The general feeling among bitcoin conscious investors about the race is that, while there are potential dangers in all markets, the market will continue to maintain stability, even if the futures market starts to take root.
For example, Barry Hayut, President and CEO of Hayver Corporation says:
“Unlike Monopoly money, Bitcoin offers many services and products that can be purchased today: money is a store of value Every day, tens of thousands of people around the world see this value in Bitcoin and exchange it with volumes recently exceeding $ 15 billion a day, which is more than the average daily trading of Apple, Google and Microsoft per day. ”
In addition, while comparisons with other bubbles (the tulip bubble of the Dutch fame, or the land bubble in the mid-19th century) the underlying Blockchain technology provides a valuable base in the Bitcoin ecosystem maintained by the consensus of the majority.
Instead, the utility of the system, along with the disconnection of Bitcoin, produces fear among bankers and traditional investors. Itay Shechter, founder of Vanywhere said:
“The value of Bitcoin is derived from the social contracts and millions of users involved.The Blockchain revolution brings power and control back to the community.Banks and regulators are not used to something that is completely out of their hands. So Bitcoin’s volatility reflects the “hype,” FOMO, and other factors in the company.Bitcoin may have risen too fast too soon recently, but Jim completely ignores the utility and technology behind it. “