Personal financial expert Dave Ramsey has provided some advice on how to deal with Bitcoin investments. Although Ramsey acknowledges that cryptocurrency has had a “fabulous” run, he still prefers to put his money into “proven” investments.
Dave Ramsey is still not a fan of Bitcoin
Famous radio show host and bestselling author Dave Ramsey gave some bitcoin advice on the Dave Ramsey Show last week.
Self-proclaimed personal money management expert Ramsey calls himself “America’s Most Trustworthy Voice for Money.” He is the author of seven best-selling books: Financial Peace, More Than Enough, Total Money Makeover, EntreLeadership, Dave Ramsey’s Complete Guide to Money, The Legacy Journey, and Smart Money Smart Kids. In total, they have sold more than 11 million copies.
Ray of Louisville, Kentucky called the Dave Ramsey Show for advice on his Bitcoin investment. “At the end of 2019 my income roughly tripled,” he began to tell his story. “And in 2020, I got very aggressive on paying off debts and was able to reduce a motorcycle debt, all credit cards, and the last two items that are now a house and a car.” He also bought BTC last year. “I bought bitcoin and it has now turned up in this huge account worth about a hundred thousand dollars.”
He added, “One of the things I want to do with it is of course to cash out the car, but it’s not enough to cash out the house. I guess my question is, will I wait with this volatile asset or sell it and move to something more traditional? “While he noted that his BTC investment rose 649% over the course of 2020 and“ expectations are that it could go higher, ”he said that Bitcoin is“ a volatile asset ”that“ is now everyone Day swings “. He admitted, “I’m just nervous about keeping this large amount of cash in this volatile asset, but I still have to worry about a house that I want to cash out in the meantime.”
Ramsey commented, “You have Vegas problems, man. I mean, you went to the slot machine, put in a quarter and dumped a few quarters, and now you are tempted to believe that this is a plan.” The finance guru added added that this is “the problem with anything that is extremely volatile” and stressed that the investment is “unpredictable”.
The personal finance expert shared with Ray what he would do if he found himself in the same situation with a Bitcoin account that had grown to $ 100,000:
I would pay it all off tomorrow. But I wouldn’t have been there at all.
Ray tried to justify his Bitcoin investment decision. “I’m single. I felt like I could afford to take the risk. I had a snowball plan for everything else,” he said.
Ramsey replied, “You can do what you want. But you ask me what I would do I wouldn’t have been there in the first place and I wouldn’t stay in it. I would pay it off tomorrow and put the money into some sensible things. “
He also pointed out, “You sit here and explain to me all the problems with investing. You already know what to do. You just want someone else to say it out loud.”
Take your fabulous income and use it to build wealth. This is a much more proven strategy for building wealth than gambling on volatile assets.
“Buying gold or buying commodities or buying bitcoin or buying currencies, I mean, there is a lot of volatility [assets]. You can perform options. You can do short sales in the market. You can be day trading. There are all sorts of things you can do and occasionally make money from, and most of the time you lose it … Bitcoin falls into that category. It’s a high risk game, ”said Ramsey.
He went on to state, “Bitcoin has had a fabulous run for the last year, but that doesn’t mean it’s an investment that you need to make.” Similarly, “Gold had a fabulous run there for a while, but that doesn’t mean it’s an investment you need to make. Those gambling and currency games are just dangerous,” he said.
Finally, Ramsey emphasized to Ray, “You do what you want to do,” noting:
I haven’t invested any money in such things. I’ve worked too hard for it and I really don’t feel like losing it. The government is taking enough of it without me losing it.
Ramsey has long been a bitcoin skeptic. Last December, he gave similar advice to another BTC investor who turned his $ 1,500 Bitcoin investment into $ 120,000. At the time, Ramsey doubted the bitcoins could be withdrawn and called the cryptocurrency “fun money”.
What do you think of Dave Ramsey’s bitcoin advice? Let us know in the comments below.
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