Dave Ramsey, a renowned financial guru and CEO of Ramsey Solutions, has expressed skepticism about cryptocurrencies, labeling them as “risky business.” His stance on digital assets highlights concerns about its volatility and speculative nature.
However, while Ramsey’s viewpoint carries weight in personal finance circles, it’s essential to consider broader perspectives within the crypto community. Crypto experts vary in their opinions, with some echoing Ramsey’s cautionary tone due to the market’s unpredictability, while others advocate for its potential as a transformative technology and investment opportunity.
Dave Ramsey sounds alarm on crypto investments
Dave Ramsey is a well-known radio host who advises Americans on personal finance. He has gained recognition for his practical approach, integrity, and extensive understanding of the financial and investment sectors.
Tens of thousands of individuals have consulted Ramsey for guidance on investing, budgeting, debt consolidation, and virtually any other aspect of personal finance.
Despite his notable background and professional accomplishments, Ramsey’s recent blog post regarding cryptocurrencies may contain an error. Ramsey unequivocally states in the post that investing in cryptocurrencies is not wise.
Furthermore, in a lighthearted manner, he stated, “You could lose your shirt (and pants) messing around with crypto. Steer clear, Big Tuna. Head for open waters. Crypto is risky business.”
In closing the article, Ramsey advised a resounding “no” in regard to cryptocurrencies, drawing a parallel to the anti-drug campaign led by former First Lady Nancy Reagan in the 1980s.
Ramsey is unequivocally opposed to cryptocurrencies. However, is this perspective entirely accurate? What do crypto experts have to say?
Some individuals hold differing opinions regarding Ramsey’s anti-crypto position. For instance, Standard Chartered analysts anticipate that Ethereum (ETH) will increase in value to $4,000 by the end of May due to forthcoming chain enhancements and the possibility that ETH spot exchange-traded funds (ETFs) will be approved.
This development might attract a fresh influx of institutional investors, potentially leading to further appreciation in price. With the current value of ETH hovering around $3,400, this would represent an almost 18% surge within a matter of months.
Although Ramsey’s article’s treatment of personal tragedies involving cryptocurrency is somewhat sensationalized, it does possess some validity. Extremely volatile cryptocurrencies pose a significant risk to investors. You may, nevertheless, be in a favorable position in the future if you are able to invest additional funds in some prospective endeavors.
Bitcoin Vs Gold: Which is a good investment?
Bitcoin was launched 15 years ago. Since then, it has gone on an unprecedented run to become the most productive asset of the twenty-first century.
Throughout this journey, investors have struggled to define Bitcoin and why it is a viable investment. Perhaps the most widely accepted and effective story to emerge is that Bitcoin is similar to digital gold.
While parallels to gold help us identify Bitcoin’s diverse use cases, is it truly a superior asset than the age-old precious metal? With a little investigation, it becomes evident that one asset outperforms the other.
The utility of gold has evolved dramatically over the years. Gold was primarily used for millennia as money; but, during the turbulent 1970s economy, it became a safe haven asset. Amid double-digit percentage inflation, gold emerged as the most realistic tool for individuals to retain wealth and resist a weakening dollar.
To its credit, gold performed admirably. During the 1970s, gold increased from just under $300 per ounce to nearly $2,600, a massive 700% increase that was more than enough to outpace galloping inflation.
Gold enthusiasts and crypto opponents frequently point out that Bitcoin’s previous price gain has been accompanied by severe volatility. Well, its true. Yes, Bitcoin’s volatility is definitely worth noticing.
However, volatility is a two-edged sword. The same volatility that causes Bitcoin to lose three-quarters of its value every few years is also what has propelled it to become the best-performing asset of the century. Not to mention, there is substantial evidence that Bitcoin’s volatility is declining as the asset class matures. Choose your hard.
Source: https://www.cryptopolitan.com/dave-ramsey-crypto-caution-should-you-listen/