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Has Crypto-Skeptic Dave Ramsey Changed His Mind About Bitcoin? Here’s what he said to a recent caller
Has Crypto-Skeptic Dave Ramsey Changed His Mind About Bitcoin? Here’s what he said to a recent caller
Nearly 16 years after its creation, Bitcoin continues to divide investors and financial experts. On the one hand, large companies and financial institutions have added this volatile asset to their operations. On the other hand, financial gurus and market veterans remain as skeptical as ever.
Dave Ramsey has firmly established himself in the latter camp. He has previously described crypto assets as “risky” and “stupid” investments, often mocking investors and advising his audience to stay away from this segment of the market.
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That’s why viewers of The Ramsey Show were surprised to hear Ramsey take a more measured tone in recent comments about the crypto asset. Here’s what he said.
Bitcoin is a currency
Jason from Connecticut wanted to know Ramsey’s thoughts on Bitcoin, given its recent rebound. Each unit of the world’s most famous cryptocurrency is currently trading at $67,459, about four times its value at the end of 2022.
“An asset with a trillion-dollar market cap is not a beanie baby,” Jason said in his email to Ramsey. Surprisingly, Ramsey did not react aggressively as he had in the past on this issue regarding crypto assets. Instead, he adopted a more measured tone.
“Bitcoin is a currency,” Ramsey admitted, apparently agreeing with some of the most loyal members of this community. However, Ramsey elaborated on his explanation: “Currencies have no value except for their history which indicates that two people are willing to fight for them,” he said.
He compared BTC to other major assets such as the yuan and the Japanese yen. However, he was quick to point out that the world’s major currencies were backed by the economic might of their issuing countries and had much longer track records. “Of all the currencies, Bitcoin is the least trusted,” he laughed. “One day it might stabilize and become a thing, but Jason, it’s not there.”
He predicts that the asset will continue to be volatile and that he will not invest in it for the same reason that he will not invest in “the Iraqi dinar.” Ramsey and his co-host argue that Bitcoin is not an “investment” because it does not produce cash flow. “I wouldn’t wish Bitcoin investments on someone I really don’t like,” Ramsey said, perhaps proving he hasn’t changed his stance on the asset.
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Warren Buffett and his business partner, the late Charlie Munger, had a similar argument: “[Bitcoin] is a gambling token and it has no intrinsic value,” Buffett said.
With this in mind, investors may have better opportunities within asset classes that generate tangible income.
Learn more: Suze Orman says Americans are poorer than they think – but having a dream retirement is much easier when you know them 3 Simple Money Moves
Better investment opportunities
Working on the premise that cash flow is the key to good investing, savvy investors like Buffett and Ramsey have always favored real estate and stocks.
However, perhaps traditional investors and cryptocurrency advocates can agree that chipmaker Nvidia (NVDA) offers some value. During crypto’s previous bull run, Nvidia saw its profits rise due to a rush on its GPU units that were ideal for cryptocurrency mining.
Now that Bitcoin is rallying again, Nvidia could see a similar surge. However, this time the boost is reinforced by the ongoing battle in artificial intelligence. Tech giants are spending billions of dollars to secure the company’s H100 chips, which are a key resource for their large language models.
In its most recent fiscal year, Nvidia generated a net profit of $29.7 billion, meaning it is profitable enough to attract the attention of traditional investors who might be skeptical of cryptocurrencies. currencies.
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This article provides information only and should not be considered advice. It is provided without warranty of any kind.