Mad Money host Jim Cramer said he sold almost all of his bitcoins. He cited the Chinese government’s crackdown on Bitcoin mining and concerns about Bitcoin’s role in ransomware attacks.
Jim Cramer worried about China’s mining crackdown and ransomware and sold almost all of his bitcoins
CNBC’s Mad Money show host Jim Cramer announced Monday that he had sold almost all of his bitcoins. As a former hedge fund manager, Cramer co-founded Thestreet.com, a financial news and literacy website.
Citing the Chinese government’s approach to bitcoin mining and the role of cryptocurrency in ransomware attacks, Cramer said:
I’ve sold almost all of my bitcoins. Don’t need it.
Cramer got into Bitcoin late last year fearing massive inflation. In March of this year, he said gold failed him and advised people to sell gold and increase their bitcoin holdings. “If you listen to me, you will drop half your gold. I’ve been saying 10% in gold since 1983. And now I say 5% in gold, 5% in bitcoin, ”he said. However, about two months ago, the Mad Money host said he sold some bitcoins to pay off his mortgage.
Bitcoin’s price slipped to $ 31,602 at the time of writing on Monday, based on data from Bitcoin.com Markets, when news from China’s central bank, the People’s Bank of China (PBOC), ordered financial institutions to halt all crypto-related activity, which is about the markets.
The Chinese government has also closed bitcoin mining farms in various areas of China. A report by the Chinese Communist Party’s Global Times newspaper claimed that more than 90% of the country’s mining capacity was shut down after the Sichuan authorities shut down many mining operations in the province.
When the PRC persecutes something, they tend to get their way … It’s not a democracy. It’s a dictatorship. I think they believe it is a direct threat to the regime because what it is is a system that is beyond their control.
The Mad Money host has also raised concerns about Bitcoin’s role in ransomware attacks and how the U.S. government will handle cryptocurrency in its efforts to combat ransomware attacks such as those affected by Colonial Pipeline and Brazil’s JBS. The Biden administration has made fighting ransomware attacks a priority and is reportedly expanding cryptocurrency analytics to identify criminal transactions.
Cramer noted, “I believe that ransomware is out of our control in our country, and I doubt Colonial will be the first company to pay for ransomware. I think they are the first to almost shut down the east coast, ”explains:
I think the Department of Justice and the FBI and the Federal Reserve and the Treasury could band together and say, “Okay folks, if you pay for ransomware, we’ll go after you.”
With China cracking down on Bitcoin mining and ransomware attacks, Cramer believes Bitcoin “won’t rise for structural reasons.”
What do you think of Jim Cramer giving up his bitcoins over China’s mining raids and ransomware concerns? Let us know in the comments section below.
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