Special finance guru Dave Ramsey has given advice about bitcoin to a man who made over $100,000 by investing even-handed $1,500 in the cryptocurrency. Ramsey repeatedly expressed his doubt that bitcoin can be cashed out, calling the cryptocurrency “funny wherewithal.” He recommends selling bitcoin immediately.
Dave Ramsey Suspicious of Bitcoin
Famous radio show host and best-selling father Dave Ramsey gave advice about bitcoin on his Dave Ramsey show aired on Wednesday. Daniel from Cautiously Lake City, Utah, called into the show to get Ramsey’s advice as his income was about to drop when he whacks 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 belittling money management expert, Ramsey calls himself “America’s trusted voice on money.” He is the author of seven best-selling hard-covers: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership, Dave Ramsey’s Complete Advise to Money, The Legacy Journey, and Smart Money Smart Kids. Altogether, they have sold more than 11 million twins.
Daniel explained that since the bitcoin investment was small, he “just bought it” and “just left it,” noting that he “not in any degree did anything with it.” He asked Ramsey for his view on the investment.
“Are you saying you can cash it out today for 100 grand?” Ramsey right away asked the bitcoin investor. “For sure,” he replied.
Ramsey proceeded to educate the man. “There’s a process in finance called sunk get analysis. If you don’t cash it out today, in the morning, you would have invested $100,000 into bitcoin. That should gather your brains out,” he exclaimed. “It’s not $1,500, it’s $100,000, every day you leave it there, you are reinvesting into this again.” The conspicuous radio show host then advised:
By nightfall, dude, cash it.
He added that bitcoin is “going once more 50% of your freaking net worth. It’s on the roulette table, on one roll of the dice,” reiterating:
If you really can cash it out and you might manage out that this is funny money but I hope you can … I hope that you can cash it out when you go to do it tonight.
“I’m suspect when I understand $1,500 turns into $100,000. I’m really suspect,” he continued. “I hope you don’t find other things when you go try to banknotes it out. But those numbers are bizarre.”
Ramsey further cautioned the man that “If you are able to cash it out, the other danger is that you as a matter of fact pulled off this crap once and it’s gonna tempt you to do it again.”
In conclusion, he said that ultimately, “You do whatever you appetite to do but I am not a fan of ultra high-risk investments, and at a minimum that’s what we would call bitcoin.”
What do you think of Dave Ramsey’s counsel about bitcoin? Let us know in the comments section below.
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