Personal finance guru Dave Ramsey has weighed in on the collapse of cryptocurrency exchange FTX. “I told you so,” he repeated repeatedly, reiterating his longstanding advice that investors should not invest money in crypto.
Dave Ramsey on Bitcoin, Crypto and the FTX Collapse
Personal finance guru and Ramsey Solutions CEO Dave Ramsey weighed in on the implosion of cryptocurrency exchange FTX in an episode of The Dave Ramsey Show, published on Friday.
Ramsey, a self-proclaimed personal money management expert, calls himself “America’s trusted voice on money.” He is the author of seven best-selling books which have sold over 11 million copies in total.
A lifelong bitcoin and crypto skeptic, Ramsey called BTC “a fun currency” in December 2020. He also expressed doubts that bitcoin could be cashed in, advising investors to sell their coins now. In January, he said crypto is fun and here to say it, but should only be a small part of a portfolio “for entertainment.”
Referencing his crypto warning, the self-proclaimed personal finance expert said “I told you so” repeatedly during his broadcast on Friday. He recalled:
I got so much bullshit from the bitcoin brothers… They’re kind of like Mary Kay to young men… They can’t listen to anything. Their brains are off if you don’t do their thing.
Ramsey added that every time he advised “don’t do crypto,” he was inundated with responses like “I’m an idiot. I am a boomer. I’m offline. I don’t understand.”
He then read a news article that compares 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 upset the Bahamians enough about you that they sue you – because they’re pretty laid back – I’m just saying you get it. pissed them off, you really stepped in. The Bahamian Securities Regulator has taken action to freeze FTX cryptocurrencies.
It is pure and simple theft.
Ramsey then quoted some crypto proponents telling him in the past, “Dave come on, when are you going to wake up Boomer to this shiny new wonderful thing, you don’t know what you’re talking about tell people to stay away from that, I’ve done…” He continued:
Where is your money now? Mr. Fried took it.
“It’s been all over the news for 48 hours. This is perhaps the biggest fraud and the biggest theft in human history,” he said.
While expressing his aversion to ‘over-regulation’ when it comes to his money, the personal finance guru admitted: ‘I like a little, and right now wouldn’t you wish you had a tiny bit of regulation? with FTX’s Sam Bankman? -Fried.”
In conclusion, Ramsey said:
I hate that you lost money, but I told you not to do this stuff.
“I just hate the spirit around this stuff and what it does to people because they get sucked into it and then they get their heads chopped off,” he said.
Following the collapse of FTX, a growing number of lawmakers have called for tighter regulation of crypto. While some analysts have warned of the risks of contagion to the entire crypto ecosystem, many people are still optimistic about the future of the industry. The Salvadoran president said Thursday that his country will start buying BTC every day. Shark Tank star Mark Cuban explained that the FTX implosion is not a crypto explosion while Tesla CEO Elon Musk said bitcoin would. Kraken CEO Jesse Powell described, “The damage here is massive…We’ll be working to fix this for years.”
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