Personal finance expert Dave Ramsay gave bitcoin advice to a man who made more than $ 100,000 by investing only $ 1,500 in cryptocurrency. Ramsay has repeatedly expressed doubts about Bitcoin’s potential to exchange, describing the cryptocurrency as „funny money“. Recommend to sell bitcoin immediately.
Dave Ramsey suspects Bitcoin
Popular radio show host and best-selling author Dave Ramsey provided Bitcoin advice in his Dave Ramsey show that aired on Wednesday. Daniel from Salt Lake City, Utah called the show to get Ramsey’s advice because his income was on the cusp of declining when he returned to school. Daniel stated that he invested around $ 1,500 in bitcoin in 2014 and has made around $ 120,000 from it so far.
Ramsey, a personal money management expert, describes himself as „America’s trusted voice on money.“ He is the author of seven bestsellers: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership, Dave Ramsey Complete Guide to Money, The Legacy Journey, and Smart Money Smart Kids. In all, they sold more than 11 million copies.
Daniel explained that since the bitcoin investment was small, he “just bought it” and “just left it,” noting that he “didn’t do anything with it”. Ramsey asked what he thought of the investment.
„Are you saying you can spend it today for 100,000?“ Ramsey quickly asked the bitcoin investor. He replied, „Certainly.“
Ramsay proceeded to educate the man. There is a process in finance called sunk cost analysis. If you hadn’t cashed it today, in the morning, you would have invested $ 100,000 in bitcoin. That should scare your mind, „he shouted.“ It’s not $ 1,500, it’s $ 100,000, every day you leave there, you reinvest in it again. „Then the popular radio show host advised:
By night, dude, cash it out.
Bitcoins „exceed 50% of your dreaded net worth. It’s on the roulette table, on one roll of the dice,“ he added.
If you can really cash it and you may find out that this is funny money but I hope you can … I hope you can cash it out when you go do it tonight.
„I doubt when I hear that $ 1,500 turns into $ 100,000. I’m really questionable.“ „I hope you don’t find other things when you try to spend it. But these numbers are strange.“
Ramsay also warned the man that „if you are able to distract it, the other risk is that you actually got rid of this nonsense once and it will tempt you to do it again.“
In conclusion, he said that in the end, „You do what you want to do but I’m not a fan of high-risk investments, and that’s at least what we call Bitcoin.“
What do you think of Dave Ramsey’s advice regarding bitcoin? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, WikiCommons, Dave Ramsay
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