Dave Ramsey, the bestselling author and host of The Ramsey Show, has once again weighed in on the cryptocurrency debate, offering blunt advice to a young caller considering Bitcoin. During an episode aired on May 20, 2021, 24-year-old Michael from Dayton, Ohio, asked whether he should invest in cryptocurrency with his $3,800 savings. Ramsey’s response was unequivocal: cryptocurrencies like Bitcoin belong in the category of 'get-rich-quick' schemes, and he advises against them.
Ramsey's Own Lessons: The Price of Quick Wealth
Ramsey, who has sold over 11 million copies of his seven personal finance books, began by sharing his own failures at age 24. 'I bought a lot of nothing-down real estate and went broke,' he said. 'I also bought gold futures with all my $5,000, following a guy who had hit 14 predictions in a row. He missed the 15th, and my net worth evaporated in 90 days.' That experience taught him that chasing quick riches often leads to losses.
Turning to Bitcoin, Ramsey acknowledged its recent meteoric rise: 'Bitcoin’s hot. Crypto’s hot. A lot of people are making a lot of money right now.' However, he stressed, 'It falls under the heading of getting rich quick, and I have not found many people that get rich quick. And I don’t like losing money.' He described cryptocurrencies as 'highly volatile, unpredictable investments,' adding that 'currencies of any kind fall in that category, and Bitcoin is the most volatile among them.'
A Slightly Better Lottery Ticket?
Ramsey compared Bitcoin to lottery tickets, stating that while Bitcoin might offer better odds, both are 'dumb ideas' in his view. He recalled a caller who turned $3,500 into $50,000 with GameStop stock, calling it 'interesting to watch from the outside.' But he doubled down: 'If I’m gonna have fun that way, I’d rather roll down the window and throw $100 bills on the interstate — that’s more fun.'
When asked if his generation gap makes him out of touch, Ramsey quipped: 'Of course everybody that’s a Bitcoin genius now thinks Dave Ramsey’s an out-of-touch boomer, which is probably true, but I’m also worth several hundred million dollars.' He then cited a study of 10,000 millionaires: 'The number that got rich quick is very, very, very small. They were methodical and boring and didn’t have a good story to tell their golf buddy. That’s what I’ve done.'
Advice for Young Investors: Boring Works
For Michael and others like him, Ramsey’s prescription is clear: invest in index funds or mutual funds over the long term. 'You can certainly do what you want, but you called here. We do not tell people to invest in highly volatile, unpredictable investments,' he said. 'I think you’ve got a better shot at Bitcoin than you do the lotto, but both are dumb ideas in my mind.'
Ramsey’s stance — rooted in decades of research and personal experience — continues to resonate with traditional finance advocates, even as the crypto crowd dismisses him. For anyone considering a speculative bet on digital currencies, his message is worth heeding: wealth is built slowly, not overnight.