Personal finance guru Dave Ramsey weighs in on the collapse of cryptocurrency exchange FTX. “I told you so,” he repeated, reiterating his longstanding advice that investors should not put money into cryptocurrencies.
Dave Ramsey on Bitcoin, Cryptocurrencies and the FTX Crash
Personal finance guru and Ramsey Solutions CEO Dave Ramsey spoke about the implosion of cryptocurrency exchange FTX during an appearance on The Dave Ramsey Show, released Friday.
Ramsey, a self-described personal finance expert, called himself “America’s trusted voice for money.” He is the author of seven bestselling books with combined sales of over 11 million copies.
A long-time Bitcoin and cryptocurrency skeptic, Ramsey called BTC “fun money” in December 2020. He also expressed doubts that Bitcoin could be cashed out, advising investors to sell their tokens now. In January, he said cryptocurrencies are fun but should be a small part of an “entertainment” portfolio.
The self-proclaimed personal finance guru made several references to his warnings about cryptocurrencies during an appearance on Friday saying “I told you so.” He recalled:
I get a lot of crap from the bitcoin bros…they’re like the Mary Kay of young people…they don’t hear a thing. If you’re not going to do their thing, their brains will shut down.
Ramsey added that every time he suggested “don’t do crypto,” he received responses like “I’m an idiot.” I am a baby boomer. I’m out of touch. I don’t know. “
He then read a news article comparing FTX and its former CEO, Sam Bankman-Fried, to the Enron fraud and Bernie Madoff’s Ponzi scheme. The cryptocurrency exchange filed for Chapter 11 bankruptcy protection last week.
Noting that FTX is facing a criminal investigation in the Bahamas, Ramsey commented: “If you can get the Bahamians to get upset with you, they’ll go after you – because they’re a very laid back bunch – I’m just saying you get ’em Angry that you actually got involved.” Bahamian securities regulator has moved to freeze FTX’s cryptocurrency.
This is outright theft.
Ramsey went on to quote what some crypto proponents have told him in the past: “Dave, come on Boomer, when are you going to wake up to this new shiny wonderful thing, you don’t know what you’re talking about telling people to stay away from this, I Already done…” He went on:
Where is your money now? Mr. Freed took it.
“It’s been all over the news for the last 48 hours. This is probably the biggest case of fraud and theft in human history,” he stressed.
Expressing his distaste for the “over-regulation” of funds, the personal finance guru admitted: “I do kind of like, now don’t you wish you had a little bit of regulation on FTX’s Sam Bankman? -Fry.”
Finally, Ramsay said:
I hate it when you lose money, but I did tell you not to do these things.
“I just hate the ethos that surrounds this stuff and what it does to people because they get sucked into it and their heads get chopped off,” he opined.
In the wake of the FTX debacle, a growing number of lawmakers are calling for greater regulation of cryptocurrencies. While some analysts have warned of the risk of contagion across the crypto ecosystem, many remain optimistic about the future of the industry. The president of El Salvador said Thursday that his country will start buying bitcoin on a daily basis. Shark Tank star Mark Cuban explained that the FTX implosion was not a cryptocurrency explosion, while Tesla CEO Elon Musk said Bitcoin would succeed. Kraken CEO Jesse Powell described: “The damage here is massive… We’ll be trying to undo it for years.”
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