The current boom in Bitcoin has the financial world ablaze as more and more people experience the highs of a bullish run on the crypto scene. Those who invested only a few thousand dollars year ago have seen their investment escalate to incredible heights in such a short time. This has led to an escalated belief that there really is a ‘get rich quick scheme’ that works, and it’s called cryptocurrency.
It is this kind of thinking that can prove dangerous in the long run. Some of the savviest businessmen, investment purists, and financial advisors still advise their clients against the highly volatile cryptocurrency markets, brandishing it as nothing less than high-risk gambling. Bestselling author and radio show host, Dave Ramsey, prefers to stick to more conventional and proven investment options and advises against Bitcoin in a big way.
Ramsey’s methods have proven to work well for those who follow his guidelines to financial freedom, but crypto is a relatively new concept that seems to work for a new breed of technologically savvy investors. The following encounter could possibly represent a ‘changing of the guard’ as the world marches on and evolves.
The Ramsey Angle
On one of his radio shows, a Bitcoin investor who had made some decent money with crypto called in to ask Ramsey for advice on whether he should cash in on his investment now or leave it to let it grow. The financial advisor didn’t skip a heartbeat in letting the man know what he would do in such a scenario. He said:
“I would cash it all out tomorrow. I wouldn’t have been in it in the first place though. Take your fabulous income and use that to build wealth with. That is a much more proven strategy to build wealth than playing volatile assets.”
Ramsey went on to insinuate that crypto investment is the same as playing casino games by labelling the caller’s issues as “Vegas problems”. He is of the opinion that we work too hard for our money to risk it in an area that is more prone to loss than it is gain.
Given Bitcoin’s history, one can understand his reservations for the currency. After hitting a then all-time high of just under $20 000 in 2017, the cryptocurrency crashed in 2018, losing over 80% of its value within a few weeks. While it is far more lucrative at present, the risk of loss is very real and ever-present.
Perhaps Ramsey and other financial gurus are correct in likening the crypto realms to the casino floor, but it’s not all chance-based gaming. Playing slots takes all the power out of your hands, as the RNG software kicks out unpredictably random results.
Cryptocurrency is highly volatile, and the tide could turn at any moment, however, certain trends in the market are still predictable, making crypto gambling a ‘game’ that incorporates both skill and a degree of luck.
As long as gambling is done responsibly and players remain educated about the risks involved, the risks are minimal. Whether you’re partaking in Online Slots or investing in crypto, never invest more than you can afford to lose.