Finance guru Dave Ramsey advises on what to do with Bitcoin investing – Finance Bitcoin News

Personal finance expert Dave Ramsey has provided some advice on what to do with Bitcoin investing. While Ramsey admits that cryptocurrency has had a “fabulous” run, he still prefers to put his money into more “proven” investments.

Dave Ramsey is still not a fan of Bitcoin

Famous radio host and bestselling author Dave Ramsey gave some bitcoin advice on the Dave Ramsey Show last week.

Self-proclaimed personal money management expert Ramsey describes himself as “America’s Most Trustworthy Voice on Money.” He is the author of seven bestsellers: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership, Dave Ramsey’s Complete Guide to Money, The Legacy Journey, and Smart Money Smart Kids. In total, more than 11 million copies were sold.

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 really aggressive with the debt settlement and got a motorcycle debt down, all the credit cards, and the last two items are now a house and a car.” He also bought BTC last year. “I bought bitcoin and it’s now in this huge account worth about a hundred thousand dollars.”

He added, “One of the things I want to do with it, of course, is pay off the car, but not quite enough to pay off the house and move into something more traditional?” in 2020 is up 649% and “expectations are that it could go higher,” he said, Bitcoin “is a volatile asset” that “now fluctuates every day”. He admitted, “I’m just nervous about holding that large amount of cash in this volatile asset, but I still have to worry about a house that I want to pay off in the meantime.”

Ramsey commented, “You have Vegas problems, man. I mean, you went to the slot machine, put a quarter in it and it poured out a couple of quarters and now you’re so tempted to believe that this is a plan. “The finance guru added that this is” the problem with everything which is extremely volatile ”, stressing that the investment is“ unpredictable ”.

The personal finance expert went on to tell Ray what he would do if he found himself in the same situation with a Bitcoin account upgraded to $ 100,000:

I would cash it all out tomorrow. But I wouldn’t have been there in the first place.

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 would not have been in and would not have stayed in it. I would cash it out tomorrow and put the money into some sensible things. “

He also pointed out, “You sit here and explain to me all the problems with the investment. You already know what to do. You just want someone else to say it out loud. ”The finance guru concluded:

Take your fabulous income and use it to build wealth with it. This is a much more proven strategy for wealth accumulation than playing with volatile assets.

“Buying gold or buying raw materials or buying bitcoin or buying currency, I mean, there is a lot of volatility [assets]. You can do options. You can go short in the market. You can do day trading. There are all sorts of things that 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.” Likewise, “Gold had a fabulous run there for a while, but that doesn’t mean it’s an investment you need to make. These commodity and currency games are just dangerous, ”he said.

Finally, Ramsey stressed, while stressing Ray, “You do what you want to do,” Ramsey noted:

I invested zero money in something like this. 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 that 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 comment section below.

Kevin Helms

Kevin, a student of Austrian economics, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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