Personal finance guru Dave Ramsey has given advice about bitcoin to a man who made over $100,000 by investing just $1,500 in the cryptocurrency. Ramsey repeatedly expressed his doubt that bitcoin can be cashed out, calling the cryptocurrency â€œfunny money.â€ He recommends selling bitcoin immediately.
Dave Ramsey Suspicious of Bitcoin
Famous radio show host and best-selling author Dave Ramsey gave advice about bitcoin on his Dave Ramsey show aired on Wednesday. Daniel from Salt Lake City, Utah, called into the show to get Ramseyâ€™s advice as his income was about to drop when he goes back to school. Daniel mentioned that he invested about $1,500 in bitcoin in 2014 and has made about $120,000 off of it so far.
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.
Daniel explained that since the bitcoin investment was small, he â€œjust bought itâ€ and â€œjust left it,â€ noting that he â€œnever did anything with it.â€ He asked Ramsey for his view on the investment.
â€œAre you saying you can cash it out today for 100 grand?â€ Ramsey quickly asked the bitcoin investor. â€œFor sure,â€ he replied.
Ramsey proceeded to educate the man. â€œThereâ€™s a process in finance called sunk cost analysis. If you donâ€™t cash it out today, in the morning, you would have invested $100,000 into bitcoin. That should scare your brains out,â€ he exclaimed. â€œItâ€™s not $1,500, itâ€™s $100,000, every day you leave it there, you are reinvesting into this again.â€ The famous radio host then advised:
He added that bitcoin is â€œgoing over 50% of your freaking net worth. Itâ€™s on the roulette table, on one roll of the dice,â€ reiterating:
â€œIâ€™m suspect when I hear $1,500 turns into $100,000. Iâ€™m really suspect,â€ he continued. â€œI hope you donâ€™t find other things when you go try to cash it out. But those numbers are bizarre.â€
Ramsey further cautioned the man that â€œIf you are able to cash it out, the other danger is that you actually pulled off this crap once and itâ€™s gonna tempt you to do it again.â€
In conclusion, he said that ultimately, â€œYou do whatever you want to do but I am not a fan of ultra high-risk investments, and at a minimum thatâ€™s what we would call bitcoin.â€
What do you think of Dave Ramseyâ€™s advice about bitcoin? Let us know in the comments section below.
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