Money expert Dave Ramsey has built a financial advice empire by focusing on basics like getting out of debt, investing in tax-advantaged retirement accounts, and maintaining a long-term perspective. What they have never shown much enthusiasm for are get-rich-quick schemes and trendy investments without a long track record – including Bitcoin and other digital currencies.
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Buying and selling crypto has often been divisive among financial advisors, many of whom disagree on whether it is a good investment, largely due to its extreme price volatility. If you wonder what it takes for Ramsey to view Bitcoin as a legitimate investment, you may be waiting a long time for the answer.
Dave Ramsey is not a fan of Bitcoin
Ramsey’s criticism of Bitcoin dates back more than a decade. In 2014, he called crypto “waco” and “a pretty good way to turn a million dollars into zero,” The Street reported. Like last year, he compared crypto investing to gambling. This is not necessarily an unfair comparison when considering the decentralized nature of the Bitcoin network and the risks inherent in such a financial system.
But that kind of criticism hasn’t stopped Bitcoin from reaching new highs. Earlier this month, the price of Bitcoin broke the $120,000 barrier. Less than a year ago, you could buy it for less than $54,000.
Despite Bitcoin’s steady rise in prices, Ramsey is still not a fan of the asset – even though some of his podcast followers suggest he’s not as critical as he used to be. He addressed that topic in a YouTube video titled, “Is Dave Ramsey finally softening his stance on crypto?”
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‘Don’t call it investment’
In the video, Ramsey outlines one of his main problems with Bitcoin – that it should be viewed as a “currency” rather than an “investment.” And Ramsey doesn’t like investing money in currencies, because that’s not his kind of digital ledger.
“No matter how legitimate a currency is, it’s a legitimate investment,” he said on the podcast. “You shouldn’t buy Chinese yuan as an investment because your golfing buddy said it was a good idea. You shouldn’t buy US dollars or euros and speculate on currency values. That’s what Bitcoin is… but don’t call it an investment.”
Another problem Ramsey sees with Bitcoin is its volatility. This year alone, its price has soared from a low of less than $75,000 to a high of more than $124,000. “Draw a chart of Bitcoin’s volatility and then smile at me with a serious face and tell me it’s a solid investment. Because it’s not,” Ramsey said.
At the same time, he acknowledged that Bitcoin is “here to stay” and that it could become “a legitimate form of transferring goods and services.” That doesn’t mean Ramsey sees it as a legitimate investment.
“It’s certainly not an investment, and it’s certainly not a stablecoin,” he said. “So, you know, no, I’m not soft on it at all.”
What do other experts say?
Ramsey has plenty of company when it comes to warnings about the risks of investing in Bitcoin.
In a December 2024 blog, Charles Schwab acknowledged the rise of Bitcoin as a currency. But it also cited several risks of investing directly in Bitcoin and other cryptos – including their volatility and increased risk of fraud, cybercrime and theft.
More recently, Fidelity made both “bull” and “bear” arguments for Bitcoin. On the downside, it said Bitcoin may be “more sensitive to market manipulation” than securities. Bitcoin is also not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation, which means you should “only buy crypto with an amount you are willing to lose.”
Caitlin Moorehead contributed reporting to this article.
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