jim cramer

Bestselling author and “Mad Money” host Jim Cramer warned prospective bitcoin investors that cryptocurrency is more like “Monopoly money” than a true asset and advised them to put their money somewhere less risky — a craps table, for instance.

Cramer, a former hedge fund manager who is best known for his market commentary on CNBC, made this sensationalist claim about bitcoin on the Wednesday episode of “Squawk Box”.

“It’s kind of like monopoly money,” Cramer said. “Obviously, there’s people who use it. If you ever say anything bad about it, there’s like this ‘bitcoin mafia’ that comes after you. But it is an oddity that has nothing to do with us” as investors.

Commenting on the recent bitcoin price upswing, Cramer alleged that buying bitcoin is “pure gambling” — not investing — and that those with the urge to gamble should go to Las Vegas instead.

“It’s just pure gambling at this point,” Cramer continued. “I mean if you want to gamble, go to Vegas. Vegas is fabulous.”

This was not the first critical statement Cramer has levied against bitcoin. Last week, he argued that its “parabolic” movement confirmed that it was in a bubble. He has also stated that announcements such as Square Cash’s bitcoin pilot program have made “people feel better” about cryptocurrency, causing it to steal some of gold’s luster

“I mean honestly, what’s the difference between bitcoin and trying to figure out the Super Bowl? I mean it’s gambling,” Cramer concluded.

Despite Cramer’s frustration, however, bitcoin continues to march forward at a breakneck pace. The bitcoin price ripped through the $14,000 mark on Wednesday evening, punctuating a single-day surge that saw bitcoin rise more than $2,000, or 20 percent. At the time of writing, bitcoin was trading at a global average of $14,510, according to the BlockExplorer bitcoin price index.

The impetus for the rally is most likely linked to the impending launch of bitcoin futures on Sunday afternoon, an event that many analysts believe will prove to be a watershed moment for cryptocurrency adoption.

Featured Image from CNBC