Dave Ramsey, expert in personal finance, has offered advice on what to do with bitcoin investments. While he acknowledges that cryptocurrencies have had a fantastic run, Ramsey still prefers to put his money into more proven investments.
Dave Ramsey is still not a fan of bitcoin
Well-known radio presenter and best-selling author Dave Ramsey gave advice on bitcoin on The Dave Ramsey Show last week.
Ramsey, self-proclaimed expert on personal money management, presents himself as America’s trusted voice on money. He is the author of seven best-selling books: Finance, More Than Enough, Making General Money, Leadership, Dave Ramsey’s Complete Guide to Money, The Legacy Journey, and Smart Money, Smart Kids. In total, more than 11 million copies have been sold.
Ray, from Louisville, Kentucky, called the Dave Ramsey Show to ask for advice on his bitcoin investments. By the end of 2019, my income had roughly tripled, he began to say. And in 2020, I started paying off my debts very aggressively and was able to get rid of my motorcycle debt and all my credit cards, and the last two things are now my house and my car. He also bought BTC last year. I bought some bitcoins, and they turned into a huge account worth about $100,000.
He added: One of the things I want to do with this money is obviously pay off the car, but it’s not enough to pay off the house, so I guess my question is, do I wait with this unstable property or do I sell it and move on to something more traditional? Noting that his investment in BTC is up 649% in 2020 and that he hopes it can go even higher, he said bitcoin is a volatile asset that now fluctuates every day. He confessed: I’m just nervous about holding so much money in such a volatile investment, while worrying about the house I want to pay off in the meantime.
Ramsey commented: You got a problem with Vegas, man. I mean, you go to a slot machine, you toss a coin in it, and it tosses a bunch of coins, and now you’re tempted to think that’s the plan. The financial guru added that this is a problem with anything highly volatile and pointed out that investments are unpredictable.
An expert in personal finance told Ray what he would do if he were in the same situation with a $100,000 Bitcoin account:
I’ll pay tomorrow. But I don’t agree with that at all.
Ray tried to justify his decision to invest in bitcoin. I’m not married. I felt I could take the risk. For everything else, I had a snowball plan, he said.
Ramsey replied: You can do whatever you want. But you ask me what I would do. I wouldn’t be there, and I wouldn’t stay there. I would cash them in tomorrow and invest the money in painful things.
He also pointed out: You sit here and explain all the investment problems to me. You already know what to do. They just want someone else to say it out loud. The financial guru concluded:
Take your fabulous income and use it to build wealth. This is a much more proven wealth creation strategy than betting on volatile assets.
Buying gold, or buying commodities, or buying bitcoin, or buying currencies, I mean, there are a lot of volatile [assets]. You can make options. You can sell short on the market. You can be a day trader. There are many things you can do and sometimes make money from it, and most of the time you lose….. Bitcoin falls into this category. It’s a risky game, Ramsey said.
He also stated: Bitcoin has had a great run over the past year, but that doesn’t mean it’s an investment to make. Exactly the same: Gold has had a great run for a while, but that doesn’t mean it’s a good investment. These games with commodities and currency are just dangerous, he said.
Finally, an accent to Ray: You do what you want to do, Ramsey said:
I have no money invested in that kind of thing. I’ve worked too hard for this, and I really don’t want to lose it. The government takes enough so I don’t lose everything.
Ramsey has long been a bitcoin skeptic. Last December, he gave similar advice to another bitcoin investor who converted his $1,500 bitcoin investment into $120,000. At the time, Ramsey doubted that bitcoins could be redeemed and called the crypto currency fiat money.
What do you think of Dave Ramsey’s advice on bitcoin? Let us know your comments in the section below.
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