Personal finance expert Dave Ramsey has sided with Warren Buffet on the authenticity of Cryptocurrencies saying the value of Bitcoin is still based on “thin air” despite its price.
According to Bitcoin News, Dave Ramsey made his remark while answering a question about Bitcoin in the latest episode of the Dave Ramsey Show.
The question came from an audience in Connecticut who emphasized that with a market capitalization of over $1 trillion, Bitcoin was no longer a child’s play and is a viable enough asset for allocation of at least five percent of investment portfolio.
In response, David Ramsey acknowledged that indeed Bitcoin’s market capitalization sets it apart from other crypto assets, but its value is still based on thin air.
When quizzed on whether Bitcoin is a good enough investment to add to a portfolio Ramsey swiftly replied “ No, it is not”
David Ramsey went ahead to explain how Gold got its value. He explained that two people agreed on Gold’s value and fought over it. Likewise green paper money. Both currencies were agreed upon by two people and were fought over.
He argued that bitcoin might someday level out and become a thing, but it is not there, yet he stated.
Regarding whether Bitcoin should be treated as a single stock, Ramsey replied that Bitcoin is a currency and thus has no intrinsic value except for the track record that indicates people are willing to fight over it.
He added that the value of every currency is based on people’s faith in them and in his opinion, Bitcoin has the least faith.