The greater fool theory refers to the idea that you can make money purchasing an asset because there is someone out there who eventually is willing to buy it from you at a higher price.
“I know a lot of people say ridiculous things about crypto—and I’ve caught a lot of flack for acknowledging that—but at the end of the day I’ve said repeatedly that you can use bitcoin or Ethereum as a hedge against inflation.
Cramer first bought ether in March as a way to bid on nonfungible tokens, or NFTs, being auctioned in March by Time magazine.
I was simply gambling on crowd psychology, though, and I have no idea whatsoever why these things went up, except that there are a lot of overenthusiastic people who want to buy high and sell higher,” Cramer said.
Cramer stressed to viewers he believes owning cryptocurrencies is totally fine as long as people view them through an investment lens, not one colored by fandom.
“I’m holding onto my Ethereum because I believe there could be millions of greater fools out there.