Has Dave Ramsey Changed His Mind About Bitcoin?
Summary
TLDRThe speaker discusses their personal philosophy on avoiding repetitive mistakes and evolving their approach to life. They address Jason's question about treating Bitcoin like single stocks, highlighting the differences between the two. The speaker argues that Bitcoin, despite its high market cap, is not a solid investment like stocks because it's based on speculation and lacks the performance and revenue track record of companies. They compare Bitcoin to commodities like gold and currencies, emphasizing that value is derived from people's agreement and faith. The speaker remains skeptical about Bitcoin's stability and its future as an investment, preferring traditional currencies and distrusting digital exchanges like PayPal for financial transactions.
Takeaways
- đ§ Personal growth involves evolving from one level of 'stupid' to a higher one, learning from past mistakes.
- đ§ The host shares a personal rule of not repeating the same mistakes and strives for continuous improvement.
- đ° Bitcoin, despite its significant market cap, is not considered by the host as a solid investment like single stocks.
- đ« Warren Buffett's perspective on Bitcoin is cited, emphasizing its lack of intrinsic value compared to traditional investments.
- đ The host questions the concept of market cap in the context of Bitcoin and its volatility.
- đ€ The source of value for commodities and currencies is discussed, highlighting the importance of collective agreement and faith.
- đ Gold's value fluctuates based on public perception, which the host uses as a parallel to Bitcoin's current status.
- â The host is skeptical of Bitcoin as an investment, preferring traditional currencies and stocks based on performance and revenue.
- đŠ The host expresses distrust in PayPal as an exchange and by extension, Bitcoin, due to its volatility and novelty.
- đĄ The idea of understanding blockchain technology is presented as a potential game-changer for the host's views on Bitcoin.
- đŽ A generational divide is suggested, with younger individuals potentially having a better grasp of new technologies like blockchain.
Q & A
What is the speaker's personal rule regarding mistakes?
-The speaker's personal rule is not to do the same stupid stuff over and over but to evolve from those experiences.
How does the speaker compare their evolution of mistakes?
-The speaker jokes about evolving to a higher level of stupidity, indicating they learn from past mistakes but acknowledge that the potential for error is always present.
What is Jason from Connecticut's question about in the script?
-Jason's question is about treating Bitcoin the same way as single stocks and whether it's reasonable to invest in it.
What is the speaker's stance on Bitcoin as an investment?
-The speaker is not in favor of investing in Bitcoin, comparing it to 'thin air' and agreeing with Warren Buffett's skepticism towards the cryptocurrency.
Why does the speaker not recommend investing even 5% in Bitcoin?
-The speaker believes investing in Bitcoin is based on smoke and mirrors, indicating it's not a solid investment despite its market cap.
How does the speaker differentiate between stocks and Bitcoin?
-The speaker views stocks as based on company performance and revenue, while Bitcoin is seen as speculative and not equivalent to investing in a company.
According to the speaker, what gives gold and currencies their value?
-The speaker suggests that gold and currencies derive their value from the collective agreement and conflict among people, not from intrinsic value.
Why is the speaker skeptical about Bitcoin's current status as an investment?
-The speaker argues that Bitcoin lacks a long track record of trust and stability, making it too volatile and speculative for investment.
What analogy does the speaker use to describe investing in volatile or untrusted currencies?
-The speaker compares investing in Bitcoin to avoiding investments in Iraqi dinar and Confederate dollars, emphasizing the importance of faith and trust in the value of a currency.
How does the speaker view the argument that lack of understanding of blockchain technology is the reason for not investing in Bitcoin?
-The speaker rejects the notion that skepticism towards Bitcoin stems from a lack of understanding of blockchain technology, arguing that experience and wisdom in investments should not be discounted.
Outlines
đ€ Bitcoin as an Investment vs. Stocks
The speaker discusses the nature of Bitcoin and contrasts it with single stocks. They mention their personal rule of not repeating the same mistakes and highlight the volatility of Bitcoin. The conversation includes references to Warren Buffett's skepticism towards Bitcoin, the speculative nature of cryptocurrencies, and the importance of public faith in the value of currencies. The speaker also compares Bitcoin to other commodities like gold and emphasizes the difference between stocks, which are based on a company's performance, and Bitcoin, which they view as a currency rather than an investment.
đ± Understanding New Technology: Blockchain
The speaker addresses the generational gap in understanding new technologies, specifically blockchain, which is often associated with Bitcoin. They reflect on their own experiences with past investment cycles and suggest that younger generations might be more inclined to embrace blockchain technology due to their familiarity with digital platforms. The speaker also promotes the every dooll app as a simple budgeting tool, contrasting it with the complexity of understanding and investing in cryptocurrencies.
Mindmap
Keywords
đĄBitcoin
đĄMarket Cap
đĄInvestment
đĄBlockchain Technology
đĄVolatility
đĄStocks
đĄCommodities
đĄCurrency
đĄValue
đĄSpeculation
đĄFaith
Highlights
The discussion revolves around the comparison of Bitcoin to single stocks and its legitimacy as an investment.
Bitcoin is considered by some as an asset with a $1 trillion market cap, but the speaker argues that it's still 'thin air'.
Warren Buffett's perspective on Bitcoin is cited, emphasizing that it has no inherent value.
The speaker suggests that while Bitcoin could be a part of a portfolio, it's not a necessity.
The concept of market cap and its relevance to Bitcoin's value is questioned.
Bitcoin's volatility is mentioned, with the speaker noting its rapid rise and fall in value.
A comparison is made between Bitcoin and gold, highlighting their shared characteristics as commodities.
The value of commodities and currencies is discussed, emphasizing the importance of collective agreement on their worth.
The speaker expresses skepticism about Bitcoin's future, likening it to other failed currencies.
The distinction between Bitcoin as a currency and stocks as representations of company performance is clarified.
The speaker admits to not understanding Bitcoin deeply, but argues that this doesn't mean a lack of investment wisdom.
The idea that understanding blockchain technology could change one's perspective on Bitcoin is presented.
The speaker reflects on past investment cycles and suggests that the current interest in Bitcoin may be part of a cycle.
A challenge is posed to the younger generation, questioning whether their familiarity with technology equates to investment wisdom.
The advertisement for the 'every dooll' app is mentioned, promoting budgeting as a practical tool for life.
Transcripts
[Music]
brought to you by the every dooll app
start budgeting for free today I do a
lot of stupid stuff but my personal rule
is not to do the same stupid stuff over
and over you evolved I I try to well
I've evolved my it's a higher level of
stupid there we because the past level
of stupid has been learned has been
grown upon it's always right below the
surface you got to watch PhD and dbb I
have graduated wow there you go delone
had has two of those I heard well he's
not not in that he's got real ones but
um there you go good kind today's
question comes from Jason in Connecticut
uh who's also not evolved uh can we
start treating Bitcoin the same way you
would treat single stocks crud son uh I
understand you're not a fan no kidding
where'd you figure that out but an asset
with1 trillion doll market cap is not a
beanie baby uh no but it's still thin
air ask uh people like Warren
Buffett who says if he doubled the
amount he had put in Bitcoin he would
still have zero cuz that's am he's put
in Bitcoin I'm going with Warren on this
one not saying you have to add it to
your portfolio but it's a good enough
asset to invest 5% no it's not okay I
don't know where the 5% comes from I
don't know where the trillion dollar
market cap comes from M and smoking
mirrors like the whole concept while you
were enjoying some time off Bitcoin has
shot from you know the ground to the
moon and probably back up again and so
now everyone's getting they're getting
loud again no way because it's hit
alltime highs and so now everyone's
going see Dave is wrong about this you
know what we've got something else that
repeats itself like gold see I've been
doing this show for 32 years and ever so
often gold goes up and everybody goes
see Dave I told you and then it goes
down and those people just disappear and
then it goes up and they go see Dave I
told you you don't understand gold you
don't really understand gold has value
like what why does it have value because
of people like you it's a commodity
that's where people get that's where
people get value the only reason gold
has value is two people agreed that had
value and they fought over it that's the
only reason the that's the same reason
that green paper has value two people
agreed it had value and they fought over
it that's what gives something value so
Commodities are exactly the same way as
currencies and uh Bitcoin someday all
kidding aside all sarcasm aside someday
it may level out and become a thing but
um Jason it's not there it's not there I
wouldn't wish a Bitcoin investment on
somebody I really dislike
that's saying something I really
wouldn't I mean I don't want I don't
even want those people to lose money
well even then I see single stocks very
differently because stocks are based on
a company's performance and revenue
being created well that's because you're
intelligent I didn't I didn't have to
think that deeply to get there and so
again I'm not mad at Bitcoin but to say
Bitcoin is the same as a single stock is
just not true no Bitcoin is a currency
it's speculation based ones currencies
have no value except for their track
record that indicates that two people
are willing to fight over them that's
why the yin versus the dollar the pound
versus the dollar the deutschmark versus
the Yen these things compared back and
forth It's the faith that people have in
something and of all the
currencies
um Bitcoin has the least Faith it's the
most I've heard a lyric once you got to
have faith
Dave I wasn't going to go there oh oh
yeah there's it I mean you just it's not
um yeah so it's going to continue to be
volatile until it's not and even then uh
I don't invest in the Iraqi dinar
because it had Saddam Hussein's face on
it and no one long no one has faith in
that currency anymore I don't invest in
Confederate dollars from the Civil War
because no one any longer has faith that
they have value except as a collectible
I know I do not invest in things where
people have not established a longrack
record of faith and even then on a
currency I don't invest in a currency I
would utilize it I would utilize it so
to the point that I don't trust PayPal
to be an exchange that's a trust
mechanism I don't use PayPal for an
exchange so I don't even use Bitcoin for
an exchange because it's too freaking
out there for that even but it's a
currency honey it's not an investment to
George's Point well d you just don't
understand the blockchain technology and
once you get it you'll change your mind
uh that's the line I hear all the time
yeah this guy doesn't understand the
blockchain it's the future maybe it is
you know when you say stuff like that it
indicates you don't understand
Investments cuz I've seen four Cycles in
my adult life of the nothing down real
estate come and go four cycles of it
we're in the fourth right now on Tik Tok
and a little bit on Instagram
but I've seen four of them some of you
aren't old enough to have seen one of
them and so you're going to fall
headlong into it like I did the first
time and bloody your freaking nose so
you can decide do old people have wisdom
from their
experience or are they out of touch and
they don't understand blockchain
technology you don't understand because
you didn't grow up with an iPhone in
your hand you didn't use it as a
pacifier so you don't know how the world
Works see you can decide that if you
want or you can decide to actually we
can learn something create your free
every dooll budget today the simplest
way to budget for your life
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