Crypto ownership in the U.S. isn’t limited to tech elites or financial risk-takers anymore. According to the National Cryptocurrency Association, 21% of American adults now hold some form of crypto.
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Over the years, Dave Ramsey has taken a firm stance against cryptocurrency, advising against investing in it. In a recent appearance on the Shawn Ryan Show on YouTube, he acknowledged crypto is evolving, but his message remains to approach with caution and know exactly what kind of risk is on the table.
In the interview, Ramsey said he believes cryptocurrency is going to continue to get bigger and better and “continue to stabilize.” While he admitted that the crypto market was once a “Wild Wild West crap show,” he now sees progress in its structure and sophistication.
That progress, he said, could eventually make it safer and more legitimate. Still, the biggest problem isn’t the tech, it’s how people are treating it.
Speculating Isn’t the Same as Investing
Ramsey drew a clear line between investing and speculating. According to him, crypto belongs squarely in the speculation camp.
The key difference? Investing involves long-term wealth creation. Speculation is a “short-term play.” It’s risky, it’s volatile, and it shouldn’t form the foundation of a retirement plan.
Too often, he said, people call into his show claiming they’re “investing in crypto”, but what they’re really doing is gambling.
Ramsey compared this to building a house with no buyer lined up: It’s a “spec home,” not a long-term rental. In his eyes, bitcoin and gold operate the same way. They don’t create wealth. They just change in price because someone else wants them.
One needs to look no further than the crypto crash of 2022 to see the truth in Ramsey’s approach to crypto: In a domino effect, the crypto market plummeted across the board and crypto investors lost millions. Those who were over-invested in crypto lost everything.
Ramsey’s issue isn’t with crypto’s existence. It’s with the way many people treat it like a golden ticket. He described hearing from 26-year-olds who put their entire net worth into bitcoin with nothing saved in retirement accounts or property. That, to him, is reckless.
Instead, he argued, crypto should only be used for speculation.
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It’s Not Creating, It’s Trading
For Ramsey, the value of a true investment comes from wealth creation. He offered the examples of Apple and Home Depot, which generate profits and make products.
Crypto, like gold or commodities, only rises in value because of demand. It’s trading, not building.
Ramsey doesn’t dismiss blockchain technology or crypto’s potential. But he made one thing clear: Believing in the tech doesn’t mean it’s smart to bet everything on it.
His advice: Treat crypto like money that could go up in flames, and keep the real investments where they belong — in long-term, proven vehicles that actually create wealth.
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This article originally appeared on GOBankingRates.com: Dave Ramsey Says Crypto Is Going To Continue To Get Bigger and Better — But Investors Should Still Be Cautious
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
