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Financial guru Dave Ramsey has given advice on whether one should invest in cryptocurrencies, like bitcoin. Ramsey sees cryptocurrency as a get-rich-quick scheme, preferring to make his money in a âmethodicalâ and âboringâ way.
Dave Ramseyâs Advice on Investing in Bitcoin and Other Cryptocurrencies
Dave Ramsey has given advice on cryptocurrency investing. Michael from Dayton, Ohio, called into The Ramsey Show saying that he had been looking into cryptocurrency and asked whether he should be investing in it. The episode, entitled âShould I Invest in Cryptocurrency?â was aired on May 20. Michael is 24 years old and has saved up $3,800 from working his job. He told Ramsey: âI just want to know what are the best investments to really look at and where to go about it.â
The self-proclaimed personal money management expert, Ramsey calls himself âAmericaâs trusted voice on money.â He is the author of seven best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership, Dave Ramseyâs Complete Guide to Money, The Legacy Journey, and Smart Money Smart Kids. Altogether, they have sold more than 11 million copies.
âYou have to set your investment goals with what you believe is your best path to becoming wealthy, otherwise you wouldnât do the investment, right?â Ramsey began. Michael agreed.
Ramsey proceeded to share his investment experience. âWhen I was 24, I made a lot of mistakes, buying things that I thought would make me wealthy, quickly and easily,â he detailed, adding that for example, he âbought a lot of nothing-down real estateâ and âwent broke as a result.â
He also âbought gold futures,â putting all of his $5,000 he had at the time in it. He followed the strategy of a âgold guy,â who âhad hit 14 times in a row on his prediction.â Ramsey stood to make $50K if this prediction hit. However, âhe missed on that try and my little bitty $5,000 net worth was just evaporated based on my attempt to make $50K in 90 days off of $5,000,â he shared.
Turning to bitcoin and cryptocurrencies, Ramsey described: âBitcoinâs hot. Cryptoâs hot. A lot of people are making a lot of money on it right now.â However, he emphasized: âIt is as you said, Michael, very very volatile and so it falls for me, an old guy, under the heading of getting rich quick and I have not found many people that get rich quick. And I donât like losing money.â Ramsay then advised:
You can certainly do what you want to do but you called here. We do not tell people to invest in highly volatile, unpredictable investments. And currencies of any kind fall in that category. Bitcoin will be the most volatile among those, crypto would be the most volatile among those.
Nonetheless, Ramsey acknowledged that there is a chance of making money with volatile assets. He referenced a guy who called into his show, who put $3,500 into Gamestop and made $50,000. The finance guru commented, âIt was interesting to watch from the outside.â
He opined: âI think youâve got a better shot at bitcoin than you do the lotto, thatâs all Iâm saying, but both of them are dumb ideas in my mind and I didnât put any money in either one of them. Iâve never bought a scratch-off ticket in my entire life.â
Reiterating that he just doesnât like giving his money away, Ramsey said that âIf Iâm gonna have fun that way, Iâm gonna roll down the window, throw $100 bills and cause traffic jams going down the interstate. Thatâs more fun.â He further noted:
Of course everybody thatâs a bitcoin genius right now thinks Dave Ramseyâs an out of touch boomer, which is probably true, but Iâm also worth several hundred million dollars so letâs go figure that out.
He then discussed that the investments depend on the investorâs risk tolerance and goal. He proceeded to compare beanie babies to BTC, stating that for him, âthatâs right up there in bitcoin.â
âThe thing is, Michael, you can invest in whatever you want but the data points tell us that people who do get rich quick donât. Thatâs the bottom line,â Ramsey said.
âOut of studying 10,000 millionaires, the number of them that got rich quick is very, very, very small,â he affirmed, adding that they were âmethodical and boring and didnât have a good story to tell their golf course buddy ⊠they just were methodical, they were boring and thatâs what Iâve done.â
What do you think about Dave Ramseyâs advice on whether to invest in bitcoin or other cryptocurrencies? Let us know in the comments section below.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.