Have We Changed Our Minds About Bitcoin?

[Music] brought to you by y refi refinance your defaulted private student loans today at y rei.com Ramsey today's question comes from Felix in North Dakota Bitcoin has been going through the roof roof recently and it looks like it's becoming more and more of a stable investment do you now recommend it as an investment or do you still believe it's too dangerous of an investment and that people should steer clear of it oh good question I'm actually interested to clear the on bitcoin cuz people really want to know my opinion said no one here's the deal I've never been anti Bitcoin uh we took a call yesterday Ken young man had every single one of his dollars in Bitcoin had nothing in savings everything in Bitcoin and he had been doing really well and he asked us well what's wrong with this and I'm going you've been alive for four days so yeah if you just think this is how it's always going to be then sure but you know we've seen things we've seen Bitcoin drop 50% value in 2022 it's 24/7 uh it's there's a lot of Fraud and scams around the crypto world right now it's been on a wild Trend up lately and so you're going well why invest in the stock market to get amazingly 10% when I could get a th% and so what really comes down to is what I call The Three Stooges of wealth which trips people up especially young people it's fear greed and pride so it's the I'm I'm so scared there's the fomo of I got to get in this now or else going to be broke forever there's the pride of well I know better there's a little bit of arrogance there and then there's the greed of just like I'm not going to settle for 12% and a slow way to wealth when I can make it a lot faster mhm and so with Bitcoin it's like investing in any single stock that's been on a wild ride you know you see Nvidia going up and then deep seek from China came out Nvidia takes it and there's all this just gyration and fear in the market of what anything's going to do and it's why I recommend diversifying so it really comes down to diversifying vers versus Bitcoin equals bad and it's more that you got all your eggs in one basket that's too much risk for one person to handle and so if you want to invest in Bitcoin I can't say invest if you want to speculate in Bitcoin put some money in that after you've already invested 15% of your income into retirement into tax advantage retirement plans proven mutual funds and index funds be my guest and use your fund money to do that knowing this is money you could burn on the table but putting all the chips in on bitcoin I'm telling you I think is going to show that was a very risky move now there's Bitcoin billionaires out there who are going haha and they're laughing from their private islands right now MH that could be the case well I think it's here I think I think there's no question that cryptocurrency is here to stay so um as a technology the blockchain it's here yeah and I would say Bitcoin is here I'm not saying Bitcoin can't fall I'm not saying I disagree with anything you said in fact I agree with everything I would say to somebody yeah if you want to invest in Bitcoin I would treat it just like we tell people to to go sit down with a smart Vestor Pro and learn about the strategies so that you understand what you were doing um but I agree with you that it should be a part of a diversified strategy not all eggs in that basket I agree with that and that's just smart investing strategy but I will say this um my my position on crypto and and Bitcoin early on was um it's risky right now but there will come a day and I still hope this and I think Trump by the way is already rattling his saber on this well he's already made a bajillion dollars doing it so of course he's a fan I know but I'm saying you're going to see this become regulated just like banking uh just like the stocks and I think when it becomes regulated because it will on some level some people would take issue with me on that and I'm okay with that I am making a prediction here but I believe that once it's regulated I believe it becomes far more stable I'm not a fan of Regulation as a whole but there is there needs to be it's the Wild Wild West right now yeah no I'm with you on that I think there will be a mutual fund filled with different cryes so diversification is the answer I agree with you I just wanted to add that little two cents there that I don't think you should feel like oh it's stupid to invest in it no I think it's just like any other investment you got to do your homework what level of risk if you sit down with a good a professional like so we talk about the smart investor Pros that are out there okay and we link to them and you can go meet them you talked with any of investment professional one of the first things they're going to talk to you about is where are you at we in your finances and what's your level of risk and so I would treat any crypto thing as a high-risk thing right now and the other piece of this we didn't talk about is that Bitcoin isn't based in anything when you invest in a mutual fund it's filled with 90 to 200 that's correct stocks of actual companies producing real products and services and real Revenue you can attribute to that and therefore what is it based on well a lot of hype a lot of well my buddy said and they're investing so it must be good well it is a currency it is you're investing in a uh an alternative currency and that's the bet it's like gold you people that invest in gold well you're investing in crypto and the last thing I do is I go what are actual wealthy people doing with their money and what I found is most of them aren't saying oh dude you got to get in on crypto they might be dabbling in there with a very very tiny percent of their world they're not going all in on it and so if you want to know how actual wealthy people invest Dave Ramsey will be unpacking that in a two night virtual event called investing Essentials I'll be joining him and here's the deal we know that if you're following social media you're going to get investing advice from a 60-second Tik Tok re or Instagram reel that's dangerous at this virtual event over two nights two hours a night we're going to walk you through how to maximize your retirement plans how to choose the right funds how to get the most out of your money how to invest with confidence plus it's the only only place you're going to hear Dave unpacking his personal Playbook on real estate investing which is fascinating stuff something he's never done here on the show this is brand new information you're going to get the clarity you need to invest so join us March 4th and 5th in the comfort of your home it's completely virtual tickets start at 199 bucks get yours today at Ramsey solutions.com events or click the link in the show notes if you're on podcast or YouTube why refi refinance is delinquent private student loans for struggling borrowers learn more at yfy / Ramsey