Personal finance guru Dave Ramsey has echoed Warren Buffet’s skepticism regarding the legitimacy of cryptocurrencies, particularly Bitcoin, suggesting that its value remains grounded in “thin air” despite its soaring price.
During a recent episode of the Dave Ramsey Show, as reported by Bitcoin News, Ramsey addressed a question posed by an audience member from Connecticut regarding the status of Bitcoin as an investment asset.
The audience member highlighted Bitcoin’s market capitalization exceeding $1 trillion, suggesting its significance as a viable investment option, potentially constituting up to five percent of an investment portfolio.
Ramsey acknowledged the substantial market capitalization of Bitcoin but maintained his stance that its value is not substantiated. When asked if Bitcoin merits inclusion in an investment portfolio, Ramsey emphatically responded, “No, it does not.”
Expounding on his viewpoint, Ramsey drew parallels to the origins of value in commodities like gold and traditional currencies. He emphasized that the value of gold and paper money originated from agreements between individuals who vied for control over them. In contrast, Bitcoin lacks such historical foundations, leading Ramsey to question its intrinsic value.
While acknowledging that Bitcoin may eventually stabilize and gain broader acceptance, Ramsey stressed that it has not reached that stage yet. Refuting the notion of Bitcoin as akin to a single stock, Ramsey categorized it as a currency devoid of inherent value beyond the collective faith of its users. He expressed skepticism regarding Bitcoin’s level of trust compared to traditional currencies, suggesting it has the lowest level of faith among them.
