Cryptocurrency is not a wise investment, according to personal finance expert and best-selling author Dave Ramsey’s company Ramsey Solutions. We do not predict the demise of cryptocurrencies. We also don’t think it’s awful. But for now, simply say no,” the Ramsey Solutions group counseled.
“Just Say No” to Cryptocurrency Is Ramsey Solutions’ Advice
An essay titled “Is crypto a good investment?” was released earlier this month by Ramsey Solutions (Ramsey), the organization that personal finance expert Dave Ramsey founded to offer financial coaching and education. Author and host of The Ramsey Show Dave Ramsey has eight national best-selling books under his belt. According to the credit for the article, “Ramsey” can be any of the writers and financial specialists that work at Ramsey Solutions.
Ramsey stated, “Risks like volatility, an unproven rate of return, and fraud make cryptocurrency not a good investment.”
The path to financial success is a long one, and there are still far too many unanswered questions regarding cryptocurrencies. Could cryptocurrency develop into a more reliable form of investment in the future? Possibly. But just say no, given the current situation.
“Quick ways to get money are just that—schemas. Don’t take a chance and invest all of your money, ambitions, and dreams in them,” the post advises.
It’s straightforward: acquiring cryptocurrency isn’t a wise approach to accumulate wealth for the future. We’re not claiming that cryptocurrencies will disappear, though. We also don’t think it’s awful. However, as Ramsey made clear, “We are arguing that cryptocurrency doesn’t have a track record of creating wealth.
Without the need for an intermediary (such as a bank or government), cryptocurrency is traded online between individuals. There is no marshal to enforce the law, so it’s like the Wild West of the internet world. Cryptocurrency’s value rises and falls randomly since there aren’t many rules governing it. As opposed to growth stock mutual funds, you are unable to compute returns or determine modifications. To develop a long-term bitcoin investment strategy, there just isn’t enough information or reliability. This is not the place to gamble with your financial destiny,” the author explained.
In addition, Ramsey noted that in the first three months of 2023, hackers took $400 million in cryptocurrency, underscoring the fact that “crypto just seems to attract seedy characters.” Ramsey stated that “cryptocurrency is going to call their name if someone wanted to commit a crime and fly under the radar without being tracked,” even though not all cryptocurrency users are “dodging the government and making shady deals on the black market.”
Furthermore, the author made note of the fact that the US government is investigating the creation of a digital currency issued by central banks (CBDC). “There’s no telling how it would impact the value of cryptocurrencies if a U.S. CBDC becomes a reality,” Ramsey said.
For several reasons, cryptocurrency is dangerous. However, the primary factor making it an unsafe investment is its propensity for dramatic price fluctuations that can occur in an instant. That’s known as volatility in the investing industry. Furthermore, a volatile investing portfolio is not a healthy thing.
Crypto and bitcoin have long been sources of skepticism for Dave Ramsey. They’re not wise investments, he has stated multiple times on his Ramsey Show. The self-described personal finance guru advised investors to liquidate their bitcoins right away in December 2020 after expressing doubts about their ability to be redeemed. He reaffirmed his warning about cryptocurrencies after the demise of FTX. However, in 2022, he declared that cryptocurrency is entertaining, would persist, and may be included in a portfolio.
What are your thoughts on the crypto guidance offered by Ramsey Solutions and Dave Ramsey? Please share your thoughts in the section below.