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When it comes to bitcoin advice, most people sit up and listen when Dave Ramsey has the floor. So it’d be no surprise if you wanted to get your Dave Ramsey bitcoin advice for 2018.
When it comes to Bitcoin, there has been huge levels of speculation floating all over the internet. Ramsey first commented on the rise of bitcoin in early 2017 and since then bitcoin has grown massively, all the way up to the high of $13,860 in December 2017.
The question many people are asking is, should they invest? Many fear that the rapid growth in bitcoin won’t continue. Since January 2018, the figures have dropped back down from its initial jump.
Many people trust the advice of bitcoin trader Dave Ramsey. Not to be confused with famed chef Gordon Ramsay who interestingly enough has been said to endorse trading robots. With that said, in order to save you time we’ve compiled all of Dave Ramsey’s public thoughts into this one tidy little blog post.
Let’s get started.
Brief History of Dave Ramsey
People refer to him as America’s trusted voice on finance; Dave Ramsey has been sharing financial advice and truths to the nation for years. Assembling a $4 million retail estate portfolio by 26 which he then lost at 30, he’s had his ups and downs with finances.
Today he runs Ramsey solutions which offer financial advice and he also is a host of the Dave Ramsey Show heard by over 13 million people each week. It’s this level of success that has given him credibility in all things finances, so what are his thoughts about bitcoin?
What You Need To Know About Bitcoin By Dave Ramsey
Unless you’ve been hiding somewhere under a rock, you’ll already know about Bitcoin or at least heard the term. It’s a digital currency which started in 2009 often coined cryptocurrency. 100,000 different retailers accept it as a payment type, but you’ll struggle to find any big-name retailers.
The idea with bitcoin is to process transactions anonymously, which means they bypass banking systems and governments. The big thing that interests most people, though, isn’t the usability of bitcoin, but rather, what it’s worth.
Some worry it’s a get-rich-quick scheme, and the Dave Ramsey bitcoin advice doesn’t stray far from this path.
Explaining What Bitcoin Is
Bitcoin is the most readily available digital currency on the market. You can’t print bitcoin bills or mint the coins; it’s all stored digitally.
It’s very similar to gold in that people pay what they think Bitcoin’s worth. Bitcoin isn’t alone; there are thousands of other cryptocurrencies that are floating about on the internet.
They all follow very similar principles and promises to Bitcoin by providing a simple and anonymous transaction.
Dave Ramsey Bitcoin Mining Explanation
So Bitcoins sound great, but how do you actually get a Bitcoin? One way you can get hold of Bitcoin’s is by ‘mining’ them.
Specialized video software runs complex math puzzles, and the reward for completing the equation is a Bitcoin. It sounds simple enough but in reality, requires a lot of powerful computers and time to mine a full Bitcoin.
There are currently around 12 million Bitcoins in circulation and the limit was originally set at 21 million.
So what determines the price of Bitcoin? Well, whatever people are willing to pay. As there is no governing body overseeing Bitcoin, the pricing can go up and down. Additionally, no strong pricing structure is one of the reasons why there is a perceived huge risk with cryptocurrency.
It’s also why we have seen such wild and volatile swings in the pricing. The lack of a reliable pricing tool is one of the reasons we’ve seen such high changes in price.
How Bitcoins Actually Work
You can exchange your online invested Bitcoins like an online digital currency. You use a website to store your coins in a digital wallet which is very similar to Paypal.
The issue with Bitcoin is that it’s unregulated, unmonitored and completely anonymous. As a result, it’s become synonymous with illegal activities and phishing scammers. This mixed together makes for some scary realities when you do start investing.
Bitcoin has recently gained some notoriety in the financial world as it’s had a large financial firm set up a future exchange for the currency. This means that you measure the value of Bitcoin against an asset or commodity like gold or silver.
It’s expected that larger investment firms like the NASDAQ in New York are making applications for future Bitcoin exchanges in the future.
Should You Invest In Bitcoin
Dave Ramsey Bitcoin questions are all over the internet and the question always comes back to, should you invest in Bitcoin? As Ramsey states on his website, it doesn’t matter about warnings that he or others give out, as Bitcoin continues to rise in price, they will always become more popular with investors.
We may even find that over time Bitcoin becomes regulated as an actual currency. If this happens will it bring stability to the Bitcoin pricing? It’s hard to say.
When considering investments it’s always worth remembering that saving emergency money is important in case you run into money issues. Dave Ramsey’s stance is ‘Don’t invest in something if it’s hip, cool, or trendy.’
He always advises if the investment is too difficult to understand when looking at how the value rises and falls, stay away.
Dave Ramsey – Doesn’t Like It One Bit
He wrote early in 2017 that he didn’t like it one bit and it seems his stance hasn’t really changed since then. He’s giving advice out online through Twitter and Youtube.
He shares advice such as when you chase a quick buck for an easy dollar, you will not go unpunished. He points out that people lose money all the time chasing easy money.
When you make those investments, you show signs of a lack of emotional maturity. His views and opinions state that investing in Bitcoin is gambling.
He compares investing in Bitcoin to playing poker or roulette. He says it’s a roll of the dice whether you win or lose.
As a philosophy bitcoin is in a manic phase and isn’t worth risking your house or mortgage over.
Dave Ramsey Bitcoin Revelation
From everything posted online and in his radio shows, it’s clear that Dave Ramsey feels Bitcoin is a fad and not a strategic investment. Do you agree with his assessment?
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