Cramer says it's possible bitcoin could reach $1 million one day

Key Points
  • European banks are frantically trying to buy bitcoin so they can pay off ransomware, Jim Cramer says.
  • "It's a short-term way to be able to deal with cybersecurity," he says.
Cramer: Bitcoin is the way to pay off 'the bad guys'

The price of digital currency stockpiled by companies to pay off potential cyberthreats could reach $1 million one day, CNBC's Jim Cramer said Wednesday.

Cramer was responding to a recent comment by Business Insider CEO Henry Blodget, who said bitcoin could go to $1 million.

"I think it could because the European banks are frantically trying to buy them so they can pay off ransomware. It's a short-term way to be able to deal with cybersecurity. It is the way to pay off the bad guys," Cramer said on "Squawk on the Street."

Cramer said Ransomware operators will ask victims to pay them in bitcoin, and when the victim doesn't know how, they'll provide an 800 number. The Financial Times reported last month that ransomware operators can operate like "pseudo companies" and will provide a video to victims on how to pay.

"When you get hit and you're not sure how to do bitcoin, these cyberattackers have customer service desks," Cramer said.

Adam White, head of Coinbase's digital currency exchange, recently said the surge in Bitcoin is unlikely due to firms buying to pay cyber-ransoms. "I think that's a stretch," he said.

On Tuesday, Bitcoin surged to a record near $3,000 before giving up some gains. The digital currency has risen nearly 200 percent this year, easily outperforming stock market benchmarks like the S&P 500 and the Nasdaq composite.

— CNBC's Fred Imbert contributed to this report.