Jim Cramer, the host of CNBC’s Mad Money, has disposed of half of his bitcoin holdings and used the substantial profits to pay off his mortgage. Although he classified this conversion as “phony money for real money,” the crypto community was quick to criticize his actions.
Cramers Pays Off Mortgage with BTC Profits
CNBC’s host has a somewhat controversial history with the primary cryptocurrency. He went from calling it an “outlaw currency” back in 2018 to highlighting and praising its benefits following the COVID-19 pandemic.
Just earlier this week, Cramer seemed to had fully-embraced BTC as he said he would “absolutely” receive his salary in bitcoin because it’s a “strong hold of value.” During a more recent interview, though, Cramer outlined he had taken profits from his BTC investment.
“I bought a lot of bitcoin at $12,000 because I thought it was a currency. And I know people will be angry at me, but I paid off a mortgage yesterday with it.”
He explained that it felt “great to pay off a mortgage” with a BTC investment, and he described the process as “phony money paying for real money.” Cramer further clarified that he sold just half of his BTC stash and added, “I think I won.”
The Crypto Community Disagrees
It may not come as a surprise that the ever-vocal cryptocurrency community was quick to lash out at Cramer’s endeavor. Some urged the long-time BTC proponent Anthony Pompliano, who had a significant role in changing Cramer’s mind last year, to talk him out.
Others, like MicroStrategy’s Michael Saylor, conducted a Twitter poll asking his hundreds of thousands of followers whether or not they agree with Cramer’s actions.
Although there’re still a few hours left, the results seem pretty conclusive. Around 85% of all participants answered that they would “buy bitcoin and short the dollar.”
Binance’s CEO, Channgpeng Zhao (CZ), also commented on the development, saying that paying off a mortgage with BTC “might look ok in the short term,” but predicted that “won’t age well in the long term.”
Furthermore, CZ outlined that Cramer “got real money and phony money backwards.”
Featured Image Courtesy of CNBC