Personal finance guru Dave Ramsey talked about the collapse of cryptocurrency exchange FTX. He reiterated his comments that investors should not invest in cryptocurrencies.
Finance guru talks about cryptocurrencies and FTX
Personal finance guru and CEO of Ramsey Solutions, Dave Ramsey, talked about the bankruptcy of cryptocurrency exchange FTX on Friday’s Dave Ramsey Show episode. Introducing himself as a personal money management expert, Ramsey calls himself “America’s trusted voice on money.” He is the author of seven books that have sold more than 11 million copies in total. He stated that he has been skeptical of Bitcoin and cryptocurrencies for a long time. Ramsey called BTC “funny money” in December 2020.
He also advised investors to sell their coins immediately, saying he did not think Bitcoin could be cashed out. In January, he stated that crypto is fun. But he said cryptos should be only a small part of a “fun” portfolio. He drew attention to these statements in the last part of his program. He referred to the warning he made in previous periods. That’s why he said “I told you so” several times on his show.
FTX bankruptcy looks like Enron scam
In fact, Ramsey underlined that he received a lot of backlash from cryptocurrency advocates. When he said not to invest in cryptocurrencies, he talked about the answers he received. According to Ramsey, the answers suggest he is “boomer, stupid, irrelevant.” Then he read an article that likened FTX and Sam Bankman-Fried to the Enron scam and Bernie Madoff’s pyramid scheme. cryptocoin.comAs we reported, the cryptocurrency exchange filed for Chapter 11 bankruptcy protection last week.
Noting that FTX is facing a criminal investigation in the Bahamas, Ramsey claimed that what the exchange did was “outright theft.” As it is known, the Bahamas securities regulator took action to freeze FTX’s cryptocurrencies. Ramsey said that in the past, some crypto advocates had asked him “at what point would he wake up and explore this amazing world.” In response to these, Ramsey now used the following statements:
Where is your money now? Mr. Fried took it. It’s been in all the news for the last 48 hours. This could be the biggest fraud and theft in human history.
Ramsey: I told you not to do that kind of thing
The personal finance guru has expressed a dislike for “over-regulation” when it comes to his money. However, he said he still wants to see some regulation on FTX and Sam Bankman-Fried. “I hate losing money guys, but I told you not to do this sort of thing,” he told his crypto-invested followers. After the collapse of FTX, many Senators in the US called for crypto regulation. Some analysts have warned of the risks of contagion to the entire crypto ecosystem.
On the other hand, many people are still optimistic about the future of the industry. El Salvador’s president said on Thursday that his country will start buying BTC every day. Shark Tank star Mark Cuban explained that the FTX boom is not a crypto boom, while Tesla CEO Elon Musk said that Bitcoin will succeed. “The damage here is huge… We will work for years to undo this,” said Jesse Powell, Kraken CEO.
