Has Dave Gone Soft On Crypto?

Summary

Ramsey Everyday Millionaires: Has Dave Gone Soft On Crypto?

Release Date: July 21, 2025

In this compelling episode of Ramsey Everyday Millionaires, hosted by the Ramsey Network, Dave Ramsey engages in a thorough discussion about his stance on cryptocurrency. Titled "Has Dave Gone Soft On Crypto?", the episode delves deep into the nuances of crypto as an investment, its volatility, and how it compares to other speculative ventures. Joined by co-host Ken Coleman, the conversation offers valuable insights for both seasoned investors and those new to the financial landscape.

1. Introduction to the Discussion

The episode kicks off with Ken Coleman posing a pertinent question from Chris in Florida, addressing a perceived shift in Dave Ramsey's attitude toward cryptocurrency. Chris references Dave's previous hardline stance and seeks clarification on whether Dave has softened his views and under what conditions he might consider crypto a legitimate investment.

2. Dave’s Firm Stance on Cryptocurrency (00:34 – 02:38)

Dave Ramsey begins by reaffirming his unwavering position against cryptocurrency as a legitimate investment. He emphasizes the fundamental difference between speculative ventures like Bitcoin and stable, traditional currencies.

Dave Ramsey [00:46]: "You should not buy the Chinese yen as an investment because your golfing buddy said it was a good idea or some idiot on TikTok."

He likens Bitcoin to gambling rather than a sound investment, highlighting its speculative nature and extreme volatility.

Dave Ramsey [01:20]: "Bitcoin is cool and it's what we talk about on TikTok. They don't talk about Iraqi dinar on TikTok. Right."

Dave underscores that while individuals are free to use "fun money" for such speculative activities, it should not constitute a significant portion of one's investment strategy.

3. Speculation vs. Investment (02:38 – 05:17)

The conversation shifts to differentiate between speculation and genuine investment. Dave warns against treating volatile assets like Bitcoin as stable investments, comparing them to gambling with high risks.

Dave Ramsey [02:50]: "What you're doing is you're... getting ready to screw up your whole freaking life because you're an idiot."

He draws parallels between cryptocurrency and other speculative items like Beanie Babies, illustrating the pitfalls of investing based on trends rather than fundamentals.

4. Comparing Crypto to Past Speculative Fads (05:17 – 07:03)

Dave reminisces about past investment fads, such as Beanie Babies and Cabbage Patch Kids, to caution against the allure of following market hysteria.

Dave Ramsey [06:10]: "It's a fad, it was a thing. Everybody got wild about it. Cabbage Patch Kids, whatever you want to go to next."

He explains that commodities and speculative items are subject to the basic supply and demand dynamics, often driven by greed and fear rather than intrinsic value.

Dave Ramsey [07:06]: "That's the commodities. The commodities go up or down based on shortage or oversupply."

5. The Necessity of Stability in Currency (07:03 – 08:51)

Expanding on the need for stability, Dave compares Bitcoin to unstable currencies from regions with political turmoil, such as the Iraqi dinar during Saddam Hussein's regime. He underscores that without a proven track record and stability, cryptocurrencies cannot be deemed legitimate.

Dave Ramsey [04:10]: "It needs a longer track record that is stable."

He dismisses the technological basis of Bitcoin as insufficient to render it a stable or reliable currency, likening its volatility to a roller coaster ride gone wrong.

Dave Ramsey [05:17]: "It's like riding the worst roller coaster that went off the rails at Six Flags."

6. The Reality of Speculative Investments (08:05 – 09:01)

Ken Coleman brings up the comparison to the COVID-19 panic-driven sales of toilet paper and hand sanitizer, highlighting how market frenzies can lead to speculative bubbles.

Ken Coleman [07:49]: "Toilet paper during COVID. Remember that?"

Dave uses these examples to reinforce his point that speculative investments are often driven by temporary shortages or irrational market behavior rather than lasting value.

Dave Ramsey [08:17]: "That's a commodity. The commodities go up or down based on shortage or oversupply."

He concludes by urging listeners to view cryptocurrency strictly as speculation and to limit such activities to "fun money," ensuring that their core investment strategies remain sound and stable.

Dave Ramsey [08:28]: "If you're going to speculate on anything, it needs to be with fun money, because that means you're gambling."

7. Final Thoughts on Investing Responsibly

Dave wraps up the discussion by reinforcing the importance of informed and disciplined investing. He cautions against the allure of quick profits through speculative means and encourages listeners to focus on stable, long-term investment strategies.

Dave Ramsey [09:01]: "If you're getting your financial advice from TikTok, you got a problem."

Key Takeaways

• Cryptocurrency as Speculation: Dave Ramsey maintains that cryptocurrencies like Bitcoin are highly speculative and akin to gambling rather than legitimate investments.

• Importance of Stability: For a currency or asset to be considered a valid investment, it must demonstrate stability and a proven track record.

• Beware of Market Fads: Historical speculative bubbles, such as Beanie Babies and hand sanitizer during COVID-19, serve as cautionary tales against following market hysteria.

• Use Fun Money Wisely: If one chooses to engage in speculative investments, it should be with disposable income that won't jeopardize their financial stability.

• Disciplined Investing Over Speculation: Emphasizing long-term, disciplined investment strategies over chasing volatile assets is crucial for building and maintaining wealth.

Notable Quotes

• Dave Ramsey [02:50]: "What you're doing is you're... getting ready to screw up your whole freaking life because you're an idiot."

• Dave Ramsey [05:17]: "It's like riding the worst roller coaster that went off the rails at Six Flags."

• Dave Ramsey [08:28]: "If you're going to speculate on anything, it needs to be with fun money, because that means you're gambling."

• Dave Ramsey [09:01]: "If you're getting your financial advice from TikTok, you got a problem."

Conclusion

In "Has Dave Gone Soft On Crypto?", Dave Ramsey reaffirms his skeptical view of cryptocurrency, emphasizing its speculative nature and inherent risks. He urges listeners to prioritize stable, long-term investments and to approach speculative ventures with caution, ensuring they do not compromise their financial well-being. This episode serves as a valuable resource for anyone navigating the complex world of investments, offering pragmatic advice grounded in financial prudence.

Transcript

[A]

Foreign.

[B]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor Today's question comes from Chris in Florida. He says you used to be hardline against crypto, but in the last couple of months you've said that. If you want to spend your fun money on crypto, go ahead, but it's speculation. How have you softened your stance on crypto? What would it take for you to see crypto as legitimate as any other currency? As legitimate? Dave, have you gone soft on us?

[A]

Well, let's start with the basics, okay? There is no currency, regardless of how legitimate that is a valid investment. You should not buy the Chinese yen as an investment because your golfing buddy said it was a good idea or some idiot on TikTok. You should not buy the US dollar or the euro and speculate on currency values. That's what bitcoin is. If it's having a good day, that's what Bitcoin is, okay? It is not a place to invest. If you want to speculate in commodities like gold or silver or wheat futures or whatever future, that's what currency is. You're speculating, you're gambling, then that's up to you. But don't call it an investment. And no, I haven't gone soft. Anyone who does that, I think, is wasting money speculating in commodities. I do zero of gambling. In Las Vegas. I do zero of. My daughter Rachel, on the other hand, has been known to be at the craps table in Vegas, but she thinks that's fun. I don't think this is fun. It's not. I don't understand it. I don't think it's fun. I've got a buddy of mine put, you know, he put $10,000, and he's worth about 40 billion or something. I don't know what he's worth a bazillion dollars. He put like $10,000 into crypto just so he could make fun of me because he knew he'd get a rise out of me. And I'm like, you're an idiot. You just put $10,000 on red and spun the wheel.

[B]

But he got the joy of getting a rise out of you.

[A]

So it's worth 10 grand to him? Apparently, yeah. He wanted me to call him an idiot, and I did. So he goes, I got more money than you. I know you do, but you're still an idiot. You just wasted 10,000 doll call you.

[B]

And eat it for free. You don't need to Drop ten grand.

[A]

I would have done it for talking about it. But you don't even have to really lose the money to do it. But that if that brings you joy and you want to speculate, you want to gamble with some of your money, a small portion of it, then do it. But that doesn't change the fact that I don't think it's smart. So I don't know. I don't.

[B]

That's always been your stance. I think we just, as it comes up more, we always go, hey, we're not mad at it. We're not going to yell at you for doing it. But realize what you're doing is speculating and don't make it a big portion of your world or your net worth or your investment strategy.

[A]

Now, the problem comes in when you substitute the word invest. That tells me you put a large portion of your life into this and you're getting ready to screw up your whole freaking life because you're an idiot. That's where your problem comes in. Okay? So, no, I haven't softened on that at all. Now, what does it take for me to call Bitcoin a legitimate currency? It needs a longer track record that is stable. Okay, let's go to an example. Okay? I have some money on my shelf that a friend of mine, the Special Forces brought back to me that has the picture of Saddam Hussein on was Iraqi money in the former regime that we went in and took out. Special Forces guy cleans out a room, there's a bunch of stacks of money that's basically worthless colored paper now. Right? Because that regime is gone now. There's a whole new government in Iraq. Right? There is a currency in Iraq today. I don't even know what it's called. The chances of me telling you to put money in an unstable new unproven currency in Iraq is zero. Because you're putting money in an unpredictable environment that has no track record. That's dumb. That's bitcoin, okay? It's only. Bitcoin is cool.

[B]

Well, it just has better marketing. The hype has really worked.

[A]

Well, it's cool and it's what we talk about on TikTok. They don't talk about Iraqi dinar on TikTok. Right. Or whatever it's called. That's what the old one was called. They probably call them the new.

[B]

You're right. It's still that.

[A]

Okay, so anyway, yeah, it's the non Saddam Hussein Iraqi Danar. Right? And so I've got some Confederate money that from the states of the south during the Civil War. Worthless. Okay. So if a new country pops up somewhere and they have a new currency, it's the same thing as bitcoin. It doesn't make it more stable or more palatable or a better investment because it's technology based. And because you think people can spell blockchain and actually describe what a blockchain is, which is an interesting concept. But until it stabilizes and it ain't stable, boys and girls, it's like riding the worst roller coaster that went off the rails at Six Flags. The one that's on the news where you were left hanging upside down. Six Flags. That one. Right. You know, and your mother's throwing up and all that. Right, That's. That's the one we're talking about here. This is not good for some people.

[B]

That's fun apparently, though. I know, use a little fun money on that.

[A]

That's right. So I'm going to put a little my money on this. But, you know, chart the volatility of bitcoin and then smile at me with a serious face and tell me this is a solid investment. And I'll tell you, you're smoking crack. Okay? Because it's not. It's all over the freaking. So when it stabilizes, I think it will. I think it's here to stay, and I think it'll be a legitimate form of transferring goods and services. Okay. At some point, I think it. I think it's here to stay. I think it's not a bad concept. It's not an investment for sure. And it's not a stable currency for sure. So, you know, no, I haven't got soft on it at all. I've actually gotten better at trashing it.

[B]

I mean, the longer it's been around and I feel like your stance since the beginning has been this way. So I don't think you've changed your stance.

[A]

Yeah, when I had the same stance when people were putting their money in Beanie Babies too, actually had people call the show back in the day that had put their kids college money in Beanie Babies.

[B]

How do you like. They just took the money, bought Beanie Babies.

[A]

Beanie Babies were quite the rage and.

[B]

Thinking, well, it will go up in value.

[A]

You couldn't get the Princess Di Beanie Baby.

[B]

Oh, that's right.

[A]

And it's on ebay right now for $10000. But it's never sold for $10000.

[B]

But it's listed for 10,000.

[A]

My dog came through the house the other day with one of them in its mouth. But none of them have ever produced any value. So it was a fad, it was a thing. Everybody got wild about it. Cabbage Patch Kids, whatever you want to go to next, whatever. What are people going to line up at Walmart for next year at Christmas? Right. And so that's what we're dealing with. That's the thing.

[B]

So you're hoping the next person is willing to pay more than I paid.

[A]

That's not an investment, that's a commodity. That's a commodity. And it's. The commodities go up or down based on shortage or oversupply. And shortage or oversupply is caused by greed or fear. So what you're doing is you're. You have too many people chasing too few goods. Drives the price up. Basic supply demand curve from seventh grade econ. And so, you know, if you have a lot of. If you have a lot of supply and not enough people chasing it, price goes down. It's called a glut in the market. Right. It's too available. Nobody cares anymore. There's no scarcity. When the Beanie Babies were going through the roof and people were paying $1,000 for a princess die, buying it off each other on the bet that it was going to go on up is because they actually thought it was going to go on up. It was shortage of shortage and scarcity.

[B]

Toilet paper during COVID Remember that?

[A]

Yeah.

[B]

People were selling that stuff on ebay.

[A]

Plexiglass. Don't you, don't you remember the time you wish you were in the plexiglass business? I wish I was in the mask business and the plexiglass business at one point. Yeah. Oh, and hand sanitizer. Oh, yeah, that was the other one.

[B]

They were making it out of like vodka. They were just anything you could make hand sanitizer out of, you could sell a jug of that thing.

[A]

Yeah, that's. Hillbillies are drinking it.

[B]

I'm just saying the hillbillies made out good selling their bathtub hand sanitizer.

[A]

No, we have not gone soft on it. What we're trying to do, honestly, is we're trying to teach you to talk about it differently so you realize what it is to quit saying it's an investment. Start calling it speculation. And if you're going to speculate on anything, it needs to be with fun money, because that means you're gambling. If you're day trading in stocks, what's the percentage of people make money in day trading in stocks?

[B]

Very few. A few percentage points.

[A]

Like two?

[B]

Yeah, over. I think over 100 days, only 3% actually come out profit. Yeah, profitable 97% lose money if they keep up for 100 days or more.

[A]

That's actual research, not TikTok. Okay, so I mean, if you're getting your financial advice from Tic Tac, you got a problem.

[B]

Thanks for tuning in to Ramsey Everyday millionaires. Need help with your investments? Connect with a smartvestor [e-mail] smartvestor or click the link in the show notes. Ramsey Solutions is a paid non client promoter of participating pros. Learn [e-mail] SmartVestor.