Don’t See This Crypto as a Risk? ‘You’re Dumb,’ According to Dave Ramsey

robot
Abstract generation in progress

Personal finance expert Dave Ramsey says a sole investment in bitcoin without seeing the risk is a dumb idea. He might not be entirely off the mark, either.

Explore More: 13 Cheap Cryptocurrencies With the Highest Potential Upside for You

Check Out: 8 Common Mistakes Retirees Make With Their Social Security Checks

Advertisement: High Yield Savings Offers

Earn 4.10% APY** on balances of $5,000 or more

View Offer ### Earn up to 4.00% APY with Savings Pods

View Offer ### Earn up to 3.80% APY¹ & up to $300 Cash Bonus with Direct Deposit

View Offer Powered by Money.com - Yahoo may earn commission from the links above. Bitcoin is fundamentally volatile, but less so than many large and popular stocks such as Netflix (NFLX). Bitcoins’ realized volatility over a 90-day timeframe averaged 46%, while Netflix averaged 54%.

However, while investors this year have been moving from gold to bitcoin, gold remains the better performer year-to-date — up 23.8%, according to Bloomberg — outperforming bitcoin and hitting a new all-time high earlier this year.

Make Sure You Have Money To Burn

From 2020 to 2024, bitcoin has been three to nearly four times as volatile as various equity indices, which is especially notable as “equity indices are typically considered the riskiest part of modern traditional portfolios due to their historical volatility”, according to Fidelity.

Ramsey said he comes across young people who say they’ve invested everything they have in bitcoin and they don’t have anything else. He equates it to the same deal as gambling in Vegas.

“If you chart bitcoin and you don’t see risk, you’re dumb,” he said on a recent podcast. “It’s all over the freakin’ world and that tells you it’s a highly volatile, short-term play and you’re trying to ride this thing out.”

Read Next: 4 Secrets of the Truly Wealthy, According To Dave Ramsey

Ramsey added it’s got the “cool factor” because it’s related to technology and people want in on it because it’s a fad.

He advised, however, that you just need to be comfortable with the amount of money you put into bitcoin and its potential loss, saying, “Just be able to burn the amount of money you put in there, in the middle of the kitchen table, and not miss it.”

More From GOBankingRates

  • I'm a Realtor: This Is Why No One Wants To See Your Home
  • 3 Things Retirees Should Stop Buying To Save Money Amid Tariffs
  • Here's the Minimum Salary Required To Be Considered Upper Class in 2025
  • 10 Unreliable SUVs To Stay Away From Buying

This article originally appeared on GOBankingRates.com: Don’t See This Crypto as a Risk? ‘You’re Dumb,’ According to Dave Ramsey

View Comments

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)