Personal finance guru Dave Ramsey weighed in on the collapse of the FTX cryptocurrency exchange. “I told you so,” he repeated repeatedly, repeating his long-standing advice that investors should not put money into 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, released Friday.
Ramsey, a self-proclaimed personal money management expert, calls himself “the trusted American voice on money.” He is the author of seven best-selling books that have collectively sold more than 11 million copies.
A longtime bitcoin and cryptocurrency skeptic, Ramsey called BTC “funny money” in December 2020. He also expressed his doubts that bitcoin could take off, advising investors to sell the coins now. In January, he said cryptography is fun and here says but it should be only a small part of a file “for entertainment.”
Referring to his warning about crypto, the self-proclaimed personal finance expert said “I told you so” several times during his show that aired Friday. He recalled:
I got a lot of crap from the Bitcoin brothers… They are like Mary Kay for young men… They can’t listen to anything. The brain shuts down if you are not going to do things.
Ramsey added that every time he advised, “don’t do crypto,” he got flooded with responses like “I’m an idiot. I’m a boomer. I don’t earn. I don’t understand.”
Then he read a news article comparing FTX and 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 Bahamas mad enough at you that they go after you – because they’re a bunch of pretty laid-backs – I just say you get they’re mad you really got into it.” Bahamian securities regulators have taken action to freeze FTX cryptocurrencies.
It’s a straight thief.
Ramsey went on to quote some crypto advocates who have told him in the past: “Dave, come on, at what point, Boomer, you’re going to wake up with this wonderful new and shiny thing, you don’t know what you’re doing talk. tell people to stay away from this, I already did…” He continued:
Where is your money now? Mr. Fried took it.
“It’s all over the news for the last 48 hours. This may be the biggest fraud and theft in human history,” he stressed.
While he expressed his dislike for “too much regulation” when it comes to his money, the personal finance guru admitted: “I like a little, and now you don’t want you had a little regulation with Sam Bankman FTX a. – Fry.”
In conclusion, Ramsey said:
I hate that you lost money guys but I told you not to do these things.
“I just hate the spirit around this thing and what it does to people because they get sucked into it and then they take themselves,” he said.
After the FTX collapse, a growing number of lawmakers called for tighter crypto regulations. While some analysts have warned of the risk of contagion throughout the crypto ecosystem, many remain optimistic about the future of the industry. The president of El Salvador said on 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 will do it. Kraken CEO Jesse Powell described: “The damage here is huge … We will work to defeat this for many years.”
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