Personal finance guru Dave Ramsey has provided advice on bitcoin to a man who made more than $ 100,000 by investing just $ 1,500 in the cryptocurrency. Ramsey repeatedly expressed doubts that bitcoin could be cashed in, calling the cryptocurrency “funny money.” He recommends selling bitcoin immediately.
Dave Ramsey suspicious of Bitcoin
Famed radio show host and bestselling author Dave Ramsey gave advice on bitcoin on Wednesday during his Dave Ramsey show that aired Wednesday. Daniel from Salt Lake City, Utah, called the show to get Ramsey’s advice, because his income was on the verge of falling when he returned to school. Daniel said he invested about $ 1,500 in bitcoin in 2014 and made about $ 120,000 from it so far.
Self-proclaimed personal money management expert, Ramsey, calls himself “America’s trusted voice on money.” He is the author of seven best-selling books: 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 all, they have 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 ‘never did anything with it’. He asked Ramsey for his opinion on the investment.
“You mean you can cash it in today for 100 grand?” Ramsey quickly asked the bitcoin investor. “Sure,” he replied.
Ramsey went on to raise the man. “There is a process in finance called sunk cost analysis. If you didn’t cash it in in the morning today, you would have invested $ 100,000 in bitcoin. That should scare your brain, ”he exclaimed. “It’s not $ 1,500, it’s $ 100,000, every day you leave it there, you invest in this again.” The famous radio show presenter then advised:
By nightfall, dude, cash it in.
He added that bitcoin is “more than 50% of your net worth. It’s on the roulette table, on one roll of the dice, ”repeats:
If you can actually cash it in and you could find out this is funny money, but I hope you can … I hope you can cash it in when you do it tonight.
“I’m suspicious when I hear that $ 1,500 is turning into $ 100,000. I am really suspicious, ”he continued. ‘I hope you don’t find other things if you’re going to try to cash it in. But those numbers are bizarre. “
Ramsey further warned the man, “If you can cash it in, the other danger is that you’ve done this shit once and it’ll tempt you to do it again.”
In conclusion, he said in the end, “You do what you want to do, but I’m not a fan of ultra-risky investments, and that’s at least what we would call bitcoin.”
What do you think of Dave Ramsey’s advice on bitcoin? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Dave Ramsey
Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.