Mad Bitcoin Bull
Jim Cramer, host of Mad Money, goes full-on bull mode for Bitcoin with Anthony Pompliano.
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Show: The Pomp Podcast
Guest: Jim Cramer - host of Mad Money on CNBC
Pomp and Jim encompass a wide spectrum of topics - the episode starts with Jim talking about his career, starting in journalism, moving to wall street, eventually running his own hedge fund, and finally transitioning to content creation. The discussion then moves to the macro environment of the economy and financial system, the value proposition of inflation hedged assets, and getting into the weeds about the structural characteristics of both gold and bitcoin, two examples of inflation hedged assets that are frequently top of mind.
1.) Pomp and Jim both raised concerns about the current macro environment in the financial system - as a result of the pandemic, interest rates manipulated to close to zero, trillions of dollars printed and injected into the markets, and the fear of inflation is an almost palpable phenomenon among investors. As a result of this macro environment, it is logical to see investors moving towards inflation hedged assets - real estate, precious metals, bitcoin, etc.
2.) An apples to apples comparison of bitcoin and gold as inflation hedged assets was eloquently articulated by Pomp, and expanded upon by Cramer: if you compare a gold bug and a bitcoiner side by side, they agree on almost all of the structural problems of the financial system and macro environment outlined above. They also agree on the theoretical solutions (sound money principles) - what they disagree on, is the application of those principles. With bitcoin, you have a digital solution, with gold, you have an analog/physical solution. Personally, we appreciate the additional benefits bitcoin provides: it's more efficient, more easily divisible, more portable, has unparalleled transparency in the circulating supply, etc. But it is a very interesting comparison from Pomp & Cramer discussing two of the most prominent inflation hedged assets.
3.) As time inevitable trudges on and every human on earth is becoming more and more digitally familiar (with some younger generations being described as "digitally native"), gold as an inflation hedged asset may be perceived as less attractive when compared to its digital counterpart. The institutional grade custody solutions and exchange custody options mitigate the former esoteric nature of purchasing and holding bitcoin, and with many bitcoiners choosing to hold their own private keys and custody their own coins, the idea of keeping a bar of gold bullion in a safety deposit box or hidden away in your attic may seem archaic as new generations of investors consider the best way to hedge against inflation.
Straight from the Source
Jim Cramer, talking about the importance of inflation hedged assets, but more importantly potential upside within the inflation hedged asset bucket:
When people say to me "well how about bitcoin"? I say well look, "I don't trade coffee, and I don't trade cotton, and I don't trade bitcoin." And that sufficed for a very long time. It worked, until the three trillion dollar (stimulus) package, because we don't have that.... This is the first time in my life, and I've said it publicly, where I know we don't have the money. And, it's one of the reasons I like gold so much, but like you said, how about upside?
Listen to the full episode:
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