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 â€œmethodicalâ€ and â€œboringâ€ way.
Dave Ramseyâ€™s 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 â€œShould 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: â€œI 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 â€œAmericaâ€™s 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 Ramseyâ€™s Complete Guide to Money, The Legacy Journey, and Smart Money Smart Kids. Altogether, they have sold more than 11 million copies.
â€œYou have to set your investment goals with what you believe is your best path to becoming wealthy, otherwise you wouldnâ€™t do the investment, right?â€ Ramsey began. Michael agreed.
Ramsey proceeded to share his investment experience. â€œWhen 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 â€œbought a lot of nothing-down real estateâ€ and â€œwent broke as a result.â€
He also â€œbought gold futures,â€ putting all of his $5,000 he had at the time in it. He followed the strategy of a â€œgold guy,â€ who â€œhad hit 14 times in a row on his prediction.â€ Ramsey stood to make $50K if this prediction hit. However, â€œhe 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: â€œBitcoinâ€™s hot. Cryptoâ€™s hot. A lot of people are making a lot of money on it right now.â€ However, he emphasized: â€œIt 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 donâ€™t like losing money.â€ Ramsay then advised:
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, â€œIt was interesting to watch from the outside.â€
He opined: â€œI think youâ€™ve got a better shot at bitcoin than you do the lotto, thatâ€™s all Iâ€™m saying, but both of them are dumb ideas in my mind and I didnâ€™t put any money in either one of them. Iâ€™ve never bought a scratch-off ticket in my entire life.â€
Reiterating that he just doesnâ€™t like giving his money away, Ramsey said that â€œIf Iâ€™m gonna have fun that way, Iâ€™m gonna roll down the window, throw $100 bills and cause traffic jams going down the interstate. Thatâ€™s more fun.â€ He further noted:
He then discussed that the investments depend on the investorâ€™s risk tolerance and goal. He proceeded to compare beanie babies to BTC, stating that for him, â€œthatâ€™s right up there in bitcoin.â€
â€œThe thing is, Michael, you can invest in whatever you want but the data points tell us that people who do get rich quick donâ€™t. Thatâ€™s the bottom line,â€ Ramsey said.
â€œOut 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 â€œmethodical and boring and didnâ€™t have a good story to tell their golf course buddy â€¦ they just were methodical, they were boring and thatâ€™s what Iâ€™ve done.â€
What do you think about Dave Ramseyâ€™s advice on whether to invest in bitcoin or other cryptocurrencies? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.