Cramer's fireside chat: Bitcoin has 'first-mover advantage' over Litecoin

Key Points
  • "Mad Money" host Jim Cramer shared his take on the future of cryptocurrencies.
  • LiteCoin could eventually be trumped by bitcoin because of the latter's "first-mover advantage," Cramer said.
Cramer says Bitcoin has 'first-mover advantage' over Litecoin

In a fireside chat on Thursday, CNBC's Jim Cramer told a caller that in the cryptocurrency markets, bitcoin seems to have a slight leg up against its fast-growing rival, Litecoin.

The "Mad Money" host said that the future of any cryptocurrency will hinge on the depth of its market and the disparity in futures prices.

That's why Cramer found it "crazy" that bitcoin futures, which are now listed on different exchanges, are so differently priced on each exchange.

"You can't have futures be that off," he said. "What you're looking for is a market that is more transparent and has one price to it. I think the Lite[coin] market is probably going to be less deep than bitcoin because of the first-mover advantage."

Litecoin, the world's fourth-largest cryptocurrency by value, has rallied 5,800 percent in 2017, trouncing even the parabolic rise in bitcoin.

On Wednesday, Charlie Lee, the founder of Litecoin, announced that he sold all of his Litecoin tokens due to a conflict of interest.

Bitcoin lost 10 percent of its value Tuesday after Coinbase, the top U.S. platform for buying and selling bitcoin, decided to back its rival, bitcoin cash.

As of 6:00 p.m. on Thursday, bitcoin futures were trading at $15,652.75 on the Bitstamp exchange.

WATCH: Cramer on the crypto showdown

Cramer's fireside chat: Bitcoin has 'first-mover advantage' over Litecoin

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website?