Jim Cramer: Cryptocurrency Protects You From Nothing

Jim Cramer said cryptocurrencies are not backed by physical assets. (Unsplash)

JAKARTA – Co-founder of financial news and financial literacy website Thestreet.com, Jim Cramer shares his views on crypto and the Fed's struggles against inflation. On CNBC's Mad Money, Cramer was outspoken about the current state of affairs.

Not only crypto, but he also touched on the stock market which has shown a bad performance lately. Cramer argues that “crypto does not protect you from anything, at all.”

Further, he stated that the Fed is trying to eliminate cryptocurrencies “to tame inflation.” On the other hand, Cramer also argues that inflation is starting to undermine the prices of other products in the real world including housing, commodities, retail, transportation, wages, and finance.

"I think the Fed is starting to make real progress in fighting inflation, and I applaud them," Crammer said.

"There is one front in the fight against inflation that is a tremendous total victory for the Fed, and that is the battle against financial speculation," he added.

Cramer pointed out that the crypto sector has taken a major hit in recent weeks, citing that several major crypto companies are facing such crises that they have been forced to lay off employees. He also warned investors about crypto lenders offering "outrageous" refunds.

“I know sad shareholders love the company, but this crypto decline is the mother of all misery,” he said.

Furthermore, Cramer said that crypto is not backed by real assets. He, therefore, refers to crypto as "the opposite of a stable store of value." Not long ago Cramer expected the price of Bitcoin to fall even further to the level of 12,000 US dollars per BTC.