The sporadic increase in Bitcoin price from $23,724.20 last week Wednesday to $28,600 this week Wednesday has defiled financial guru analysis.
Dave Ramsey, a personal finance guru had last week Wednesday advised a man who made over $120,000 by investing just $1,500 in the cryptocurrency in 2014 to sell it.
Ramsey based his premise on his doubt that bitcoin can be cashed out, adding that cryptocurrency is a “funny money.”
Since he gave his advice 7 days ago to man, the Bitcoin price has gained additional $5,000 from the sales of one bitcoin.
Dave Ramsey, who is a famous radio show host and best-selling author had during a show last Wednesday gave advice about his position on bitcoin.
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On Dave Ramsey show aired last Wednesday, Daniel from Salt Lake City, Utah, called into the show to get Ramsey’s advice, believing that his income would drop when he goes back to school.
Daniel said that he invested about $1,500 in bitcoin in 2014 and has made about $120,000 off of it so far.
Dave Ramsey is the author of these seven best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, EntreLeadership, Dave Ramsey’s Complete Guide to Money, The Legacy Journey, and Smart Money Smart Kids. Altogether, they have sold more than 11 million copies.
Daniel who asked Ramsey his views about his investment, said he “just bought it” and “just left it,” adding that he “never did anything with it.”
Bitcoin.com reports that Ramsey said: “Are you saying you can cash it out today for 100 grand?” Ramsey quickly asked the bitcoin investor. “For sure,” he replied.
Ramsey proceeded to educate the man. “There’s a process in finance called sunk cost analysis. If you don’t cash it out today, in the morning, you would have invested $100,000 into bitcoin. That should scare your brains out,” he exclaimed. “It’s not $1,500, it’s $100,000, every day you leave it there, you are reinvesting into this again.” The famous radio show host then advised:
By nightfall, dude, cash it.
He added that bitcoin is “going over 50% of your freaking net worth. It’s on the roulette table, on one roll of the dice,” reiterating:
If you really can cash it out and you might find out that this is funny money but I hope you can … I hope that you can cash it out when you go to do it tonight.
“I’m suspect when I hear $1,500 turns into $100,000. I’m really suspect,” he continued. “I hope you don’t find other things when you go try to cash it out. But those numbers are bizarre.”
Ramsey further cautioned the man that “If you are able to cash it out, the other danger is that you actually pulled off this crap once and it’s gonna tempt you to do it again.”
In conclusion, he said that ultimately, “You do whatever you want to do but I am not a fan of ultra high-risk investments, and at a minimum that’s what we would call bitcoin.”
Bitcoin.com
