Dave Ramsey and Chris Hogen are well known financial advisors in the United States, often known helping the average American to manage their finances. In a recent radio show form Dec 23rd, Dave & Chris recommends Daniel from Utah to cash out on the bitcoin and suspects if he can get the money out.
During the radio show Daniel from Utah mentioned that he invested about $1,500 in bitcoin in 2014 and has made around $100,000 off of it so far and he asked about Ramsey’s advice. Dave Ramsey immediately asked” Are you saying you can cash it out today for 100 grand?”
Dave called this as a funny money and recommends him to cash that out if he can. This clearly implies that Dave Ramsey is not not familiar with cryptocurrency( in this case Bitcoin) or has not made any attempt to understand it.
Dave further adds “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.“
“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,” “It’s not $1,500, it’s $100,000, every day you leave it there, you are reinvesting into this again.”
Chris Hogen backs up Dave’s recommendations which further confirms they have no knowledge or educated themselves in the cryptocurrency space while they give advice which doesn’t seem to be right.
He concludes the conversation saying “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.”
Conclusion :
Cryptocurrency is a new type of currency however as financial advisors they need to educate themselves. Dave Ramsey is one of the most adored personalities in the financial space and its not right for them to provide incorrect recommendations.
This also shows the audience that these personalities are not educated in the crypto space. One of the comment in his YouTube channel says “Calling Dave about your crypto is like asking your toddler about parent advice” which was liked by lot of commenters in his channel.
Dave Ramsey has some of the best advise for a common man and he is followed by millions in North America however its worthwhile to note that advising anything without knowing is probably not the best idea.
