Financial Guru Dave Ramsey reflected his thoughts on investing in Bitcoin. He referred to crypto investment as a get-rich-quick-scheme. He revealed that he prefers to get rich in a methodological and boring way.
Who is Dave Ramsey?
Dave Ramsey, a financial guru, gave his advice on investing in Cryptocurrency. In his TV show, The Ramsey Show, a caller from Dayton, Ohio, Michael, asked Mr Ramsey if he should invest in Cryptocurrency or not. Even the title of the episode was “Should I invest in Cryptocurrency?” The episode aired on May 20. Michael called in this episode of the show and asked Dave Ramsey where he should invest his $38000 savings and which investment will be good for him.
Dave Ramsey calls himself America’s Trusted Voice on Money, and he also considers himself the money management expert. He wrote seven best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, and EntreLeadership. Dave Ramsey’s Complete Guide to Money, The Legacy Journey, and Smart Money Smart Kids. Collectively these seven books have sold more than 11 million copies around the globe.
What Advice Did He Give?
Ramsey advised Michael that to become successful in investing business, it is essential that he should set his investing goals first, which will direct him to invest more wisely. After that, Ramsey reflected on his investment journey, saying that at the age of 24, he made a lot of mistakes by purchasing those items, which he thought would make him quick and easy money. For instance, he bought many nothing-down real estates, which led him to go broke eventually. Moreover, he spent all of his $5000, at that time, on gold futures. He started following a gold guy whose prediction became true 14 times straight. If his prediction is to come true for the 15th time, Ramsey was set to make $50k. But things didn’t go according to his plans, as he lost $5000 in search of making this investment to make $50k in 90 days.
On Cryptocurrency, he said that no doubt the Bitcoin and Cryptocurrency is the market trend, and a lot of people are getting rich by investing in it. Still, as a conventional investor, he doesn’t want to take the risk of losing money by following the “all or nothing” strategy.
He advised Michael that he can invest in whatever business he likes. Still, if he is calling here for advice, then in this show, they don’t encourage people to invest in volatile stocks and bitcoin, and other cryptocurrencies are volatile.
However, Ramsey said that he saw a lot of people getting rich by investing in volatile stocks. He told about a guy who invested $3500 in GameStop and ended up with $50,000, which was good to watch from the outside. If you compare lotto with Bitcoin, then bitcoin is a better option to invest in, but both of them are not a wise investment, he added.