Dave Ramsey, a personal financial expert, has commented on the demise of bitcoin exchange FTX. He frequently added, "I told you so," emphasizing his well-known suggestion that investors stay away from cryptocurrency.
Dave Ramsey Discusses Bitcoin, Cryptocurrency, and the FTX Collapse
Dave Ramsey, a personal finance expert and the CEO of Ramsey Solutions, provided his opinion on the collapse of the cryptocurrency exchange FTX in a Dave Ramsey Show episode that was released on Friday.
As "America's trusted voice on money", Ramsey, a self-described personal finance expert, has written seven best-selling books that have collectively sold more than 11 million copies.
Ramsey, a longtime critic of bitcoin and cryptocurrencies, referred to BTC as "fake money" in December 2020. He also expressed skepticism about the viability of cashing out bitcoin and suggested that investors sell their coins right away. He stated in January that while cryptocurrency is entertaining, it should only make up a modest portion of a portfolio.
The self-proclaimed personal finance guru used the phrase "I told you so" multiple times throughout his presentation, which was released on Friday, in reference to his warning regarding cryptocurrency. He remembered:
"I got so much crap from the Bitcoin bros … They are pretty much like Mary Kay for young men … They can’t listen to anything. Their brains are turned off if you’re not going to do their thing."
Ramsey continued that he frequently received comments like "I'm an idiot" in response to his advice to "don't do crypto." A boomer, I am. I have lost touch. I don't comprehend.
Then he read aloud a news piece comparing the Enron hoax and Bernie Madoff's Ponzi scheme to FTX and its former CEO Sam Bankman-Fried. Last Monday, the Bitcoin exchange requested Chapter 11 bankruptcy protection.
The Bahamas securities regulator has taken action to freeze FTX's cryptocurrency. Ramsey noted that FTX is under criminal investigation in the Bahamas. He said:
"If you can get the Bahamians upset enough about you that they go after you — because they’re a pretty laid-back bunch — I’m just saying you get them pissed off you have really stepped in it."
Ramsey cried out:
"It’s straight-up thievery."
Ramsey continued by quoting statements made to him in the past by some crypto supporters, including:
"Dave, come on, at what point, Boomer, are you going to wake up to this new and shiny wonderful thing, you don't know what you're talking about telling people to stay away from this, I've already made..."
He emphasized the FTX fiasco as may be the biggest fraud and theft in human history and went on saying:
"Where is your money now? Mr. Fried took it. For the past 48 hours, it has been all over the news."
The personal finance expert acknowledged that while he dislikes "over-regulation" when it comes to his money, Ramsey stated:
"I do enjoy a small bit. Right now aren't you wishing you had a wee bit of regulation with FTX's Sam Bankman-Fried?"
Ramsey concluded by saying:
"I hate that you lost money guys but I did tell you not to do this stuff. I really loathe the spirit behind this thing and what it does to individuals because they get drawn into it and then they get their heads chopped off."
An increasing number of lawmakers have demanded stricter cryptocurrency regulation in the wake of the FTX meltdown. Many people remain enthusiastic about the future of the business, despite some analysts' warnings about the risks of contagion to the broader crypto ecosystem. The president of El Salvador said on Thursday that his nation would begin purchasing Bitcoin every day. While Tesla CEO Elon Musk predicted that bitcoin would survive, Shark Tank star Mark Cuban argued that the FTX implosion is not a crypto blowup. Kraken CEO Jesse Powell said:
"The damage here is immense. We're going to be working to reverse this for years."
