Here’s What Dave Ramsey Says About Investing In Bitcoin

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Personal finance guru Dave Ramsey has plenty of advice on many different financial topics.

Unsurprisingly, Ramsey weighed in on Bitcoin, which is one of the most popular and well-known new investment options. Its website addresses the issue of investing in cryptocurrency, both explaining what it is and how to invest in it, as well as providing an overview of whether to buy some of the virtual coins.

So based on the advice he provided online, is Ramsey in favor of Bitcoin investing? The answer is a little more complicated than you might think.

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What does Dave Ramsey think of Bitcoin?

According to Dave’s website, Ramsey Solutions, Bitcoin is both a risky and complicated investment. In fact, it is described as “downright mysterious” as well as a very volatile investment that could easily go up 300% in a year or see the bottom drop.

Ramsey encourages its readers and listeners to invest in assets that have a history of compound growth over the long term, such as mutual funds. And its description of Bitcoin indicates that the investment does not meet this criterion.

Additionally, due to the lack of regulation within the cryptocurrency industry, Ramsey’s position is that there is “a lot of unnecessary risk” associated with buying Bitcoin as a investment.

Does Ramsey think you should invest in Bitcoin?

Due to concerns about volatility, lack of regulation, and Bitcoin’s insufficient track record of steady growth, Ramsey has made it clear that you absolutely should not invest your retirement money in Bitcoin.

“Never risk your retirement on an investment that is too complicated or unreasonably risky just because it is the new trendy thing to do,” warns the Ramsey Solutions site.

However, that doesn’t necessarily mean that no one should ever invest in cryptocurrency. In fact, Ramsey’s position is that it’s worth discussing new investments like Bitcoin with an investment professional once you’ve set aside 15% of your retirement income in safer investments.

And Ramsey isn’t entirely negative about cryptocurrency, which suggests that he might believe that a Bitcoin investment might have some merit as an alternative option if you’ve achieved your retirement goals.

Its website points out that it is the most widely accepted of all cryptocurrencies, with over a third of small and medium businesses accepting Bitcoin. It also indicates that a growing number of investment companies have embraced Bitcoin, as well as other high profile companies that have added cryptocurrency to their books as an asset.

Of course, investors must be prepared to accept the increased volatility that accompanies a Bitcoin investment, with Ramsey describing the coin’s past performance as a “Bitcoin roller coaster”, which has seen dramatic swings. For investors familiar with red flags, however – including Bitcoin’s complicated nature, uncertain past, and potentially bumpy future – making a Bitcoin investment could potentially be a viable new way to invest.

Ultimately, you’ll need to think about your own financial goals and how much risk you’re willing to take. But it’s a good idea to take Dave’s advice and make sure that you invest your money in safer investments first before betting on Bitcoin.

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