Is Dave Ramsey Finally Softening His Stance On Crypto?

Summary

Summary of Episode: "Is Dave Ramsey Finally Softening His Stance On Crypto?"

Podcast Information:

• Title: The Ramsey Show Highlights
• Host/Author: Ramsey Network
• Description: A quick, daily dose of advice on life and money in under ten minutes, featuring experts like Dave Ramsey, Ken Coleman, Rachel Cruze, Dr. John Delony, George Kamel & Jade Warshaw. Delivered seven days a week.
• Episode: Is Dave Ramsey Finally Softening His Stance On Crypto?
• Release Date: July 29, 2025

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Introduction

In this episode of The Ramsey Show Highlights, Dave Ramsey addresses a listener's question regarding his evolving perspective on cryptocurrency. The discussion delves into whether Ramsey has softened his long-standing skepticism about crypto and explores the criteria that would make digital currencies legitimate investments or currencies in his view.

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Listener's Question and Initial Response

Timestamp: [00:10]

A listener named Chris from Florida poses a question to Dave Ramsey, highlighting a perceived shift in Ramsey's stance on cryptocurrency. Chris references Ramsey's recent comments suggesting that spending "fun money" on crypto is acceptable, categorizing it as speculation rather than a solid investment.

Key Points:

• Crypto as Speculation: Ramsey acknowledges that Bitcoin and similar cryptocurrencies are speculative assets rather than traditional investments.
• Investment Philosophy: He emphasizes that genuine investments should not be based on fleeting trends or unverified tips, whether it's about foreign currencies like the Chinese yuan or traditional fiat currencies like the US dollar and Euro.

Notable Quote:

"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." — Dave Ramsey [00:31]

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Ramsey's Stance on Gambling and Speculation

Timestamp: [01:00] - [02:22]

Dave Ramsey likens cryptocurrency investment to gambling, stressing that it should not form a significant part of one's financial strategy. He shares a personal anecdote about a friend who invested $10,000 in crypto merely to provoke Ramsey, reinforcing his belief that such speculative investments are unwise.

Key Points:

• Gambling vs. Investing: Ramsey draws a clear line between responsible investing and gambling, advocating for the latter to remain a minor, non-impactful part of one's financial activities.
• Personal Anecdote: Sharing his friend's behavior serves to illustrate the irrational enthusiasm some have towards speculative investments like crypto.

Notable Quotes:

"Anyone who does that, I think, is wasting money speculating in commodities." — Dave Ramsey [01:00]

"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." — Dave Ramsey [02:22]

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Distinguishing Investment from Speculation

Timestamp: [02:41] - [04:14]

Ramsey reinforces his unwavering position against viewing cryptocurrency as a legitimate investment. He emphasizes the importance of not letting speculative activities overshadow one's overall financial health.

Key Points:

• Terminology Matters: Substituting "invest" with "speculate" changes the perception and impact of financial activities.
• Criteria for Legitimate Currency: For Ramsey to consider Bitcoin or any crypto as a legitimate currency, it must demonstrate a longer, stable track record.

Notable Quote:

"What was it take for me to call Bitcoin a legitimate currency? It needs a longer track record that is stable." — Dave Ramsey [04:07]

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Comparison with Historical Fads

Timestamp: [04:14] - [07:10]

Ramsey draws parallels between cryptocurrency and past speculative fads like Beanie Babies and the Iraq dinar investment craze. He highlights the transient nature of such trends and their lack of inherent value.

Key Points:

• Historical Analogies: By comparing crypto to Beanie Babies and the Iraqi dinar, Ramsey underscores the speculative bubble nature of these assets.
• Supply and Demand Dynamics: He explains how price fluctuations in speculative markets are driven by human emotions like greed and fear, rather than intrinsic value.

Notable Quotes:

"That's the problem with Bitcoin... it's like riding the worst roller coaster that went off the rails at Six Flags." — Dave Ramsey [04:50]

"You have too many people chasing too few goods. Drives the price up. Basic supply demand curve from seventh grade econ." — Dave Ramsey [07:00]

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Crypto's Stability and Future

Timestamp: [05:21] - [06:10]

Ramsey acknowledges that while Bitcoin and other cryptocurrencies are highly volatile and not suitable as stable investments currently, he believes that they may become more established forms of currency in the future once they stabilize.

Key Points:

• Short-Term Instability: Highlights the current volatility and unpredictability of cryptocurrencies, making them unsuitable for serious investment.
• Long-Term Potential: Expresses a measured optimism that crypto could become a legitimate medium of exchange once it achieves stability and a proven track record.

Notable Quote:

"No, I haven't got solved on it at all. I've actually gotten better at trashing it." — Dave Ramsey [06:02]

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Final Thoughts and Reinforcement of Stance

Timestamp: [07:10] - [09:00]

Ramsey concludes by reiterating his firm stance against viewing cryptocurrency as a reliable investment. He emphasizes the importance of understanding the speculative nature of such assets and advises listeners to approach them with caution, treating them as fun money rather than a foundation for financial planning.

Key Points:

• Terminology Shift: Encourages listeners to refer to crypto as speculation rather than investment to foster a clearer understanding of its risks.
• Risk Awareness: Warns about the high likelihood of financial loss in speculative trading, whether in crypto or day trading stocks.

Notable Quotes:

"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." — Dave Ramsey [08:25]

"If you're day trading in stocks, what's the percentage of people make money in day trading in stocks?... Only 3% actually come out profitable." — Dave Ramsey [08:50]

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Conclusion

Throughout the episode, Dave Ramsey maintains his critical perspective on cryptocurrency, categorizing it firmly as speculative gambling rather than a sound investment or legitimate currency. While he acknowledges the technological advancements and potential future stability of digital currencies, his advice remains consistent: avoid allocating significant portions of your finances to such volatile and unpredictable assets. Ramsey's emphasis on responsible financial planning and skepticism towards fleeting investment fads serves as a cautionary message for listeners considering diving into the crypto market.

Transcript

[A]

Brought to you by why refi refinance your defaulted private student loans [e-mail] Ramsey.

[B]

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. Have you softened your stance on crypto? What would it take for you to see crypto as legitimate as any other currency? As. 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. 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 know 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 it would 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 ten grand to him, Apparently. Yeah. I just. 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 and eat it for free.

[B]

You don't need to drop ten grand.

[A]

I would have just. 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]

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 was 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. It's a hype is really worked well.

[A]

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. You're right.

[B]

It's still that.

[A]

Okay, so anyway, yeah, it's the non Saddam Hussein Iraqi dinar. Right. And so I've got some confederate money that from. 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 cool because 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 at 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.

[B]

This is not good for some people. That's fun apparently, though, I know. Use a little fun money on that.

[A]

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? Cause 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's here to stay. I think it's a 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 solved 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 2 actually had people call this 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'll 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. Xboxes, whatever. What are you going to line up at Walmart for next year at Christmas? Right. And so that's what we're dealing with. It's a, it's. That's the thing.

[B]

So you're hoping the next person is willing to pay more than I paid. That's not an investment.

[A]

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 have too many people chasing too few goods. Drives the price up. Basic supply demand curve from seventh grade econ. And so 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, 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 remember the time you wish you were in the plexiglass business? I wish I was in the mask business and the Plexiglas business at one point. Yeah. Oh, and hand sanitizer.

[B]

Oh, yeah.

[A]

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. We've. You know, 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 fund 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 a hundred days. Only 3% actually come out profitable.

[A]

Profitable?

[B]

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. Why? Refi Refinances delinquent private student loans for struggling borrowers. Learn more at yrefy. Com Ramsay.