The Crypto Dads –
Personal finance expert Dave Ramsey has clear advice on what to do with bitcoin investments. While acknowledging that the cryptocurrency has had a “fabulous” run, Ramsey still prefers putting his money in more “proven” investments.
The famous radio show host and best-selling author gave blunt advice about bitcoin on The Dave Ramsey Show last week.
Ramsey – who calls himself “America’s trusted voice on money” – 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. Altogether, they have sold more than 11 million copies.
Ray from Louisville, Kentucky, called into The Dave Ramsey Show to ask for advice about his bitcoin investment. “In late 2019, my income roughly tripled,” he began telling his story. “And in 2020, I got real aggressive with paying off debt and I was able to clear off a motorcycle debt, all 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 ballooned into this huge account now, worth roughly a hundred thousand dollars.”
He added: “One of the things I want to do with it is obviously pay off the car but it’s not quite enough to pay off the house, so I guess my question is do I wait with this volatile asset or do I sell it and move into something more traditional?” While noting that over the course of 2020, his BTC investment rose 649% and “the expectations are that it could go even higher,” he said bitcoin “is a volatile asset” that “swings now every day.” He admitted: “I’m just nervous about keeping this large amount of cash in this volatile asset but still having to worry about a house that I’d like to pay off in the meantime.”
Ramsey commented: “You’ve got Vegas problems, man. I mean, you walked up to the slot machine, put a quarter in and it dumped a bunch of quarters out and now you have this temptation to think that’s a plan.” The financial guru added that this is “the problem with anything that is extremely volatile,” emphasizing that the investment is “unpredictable.”
The personal finance expert proceeded to tell Ray what he would do if he were in the same situation with a bitcoin account that had appreciated to $100K:
I would cash it all out tomorrow. I wouldn’t have been in it in the first place though.