Should I Invest In Cryptocurrency?

Should I Invest In Cryptocurrency?

michael starts off this hour in dayton ohio hey michael how are you hey dave how's it going it's an honor to speak with you and ken you too sir what's up hey so i've been looking a lot at cryptocurrency and i know you guys are a little against it the it's pretty hostile in that environment i have about 3 800 saved up from working my job and i just want to know what are the best investments to really look at and where to go about it um hostile what do you mean hostile well hostile where the validity of it were the volatility yes oh yeah definitely okay well i mean you you have to set your investment goals with what you believe is your is your best path to becoming wealthy otherwise you wouldn't do the investment right and so um how old are you i'm 24

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okay all right so when i was 24 i made a lot of mistakes buying things that i thought would make me wealthy quickly and easily i bought a lot of nothing down real estate i went broke as a result i i bought gold futures once a buddy of mine had a uh stock broker ken a friend of his it was a gold guy and he had he had the ticket he had it figured out he had the formula and uh he had hit uh buying on the way a future works you purchase it at a price and if it goes under that if the if the price is under that when you get to that date you get zero if you go if it's over that then you get a multiple of what you've put in and so um i bought a future put five thousand dollars in that i didn't really have that's about all i had put the whole five thousand dollars in because this guy had hit uh he had hit 14 times in a row on his prediction wow i mean he was amazing he was like a gold savant he had it all figured out i mean 14 times he had hit and the future made and so the rate we went in at i put five thousand dollars in and it was a 10x if it hit i was gonna make 50 grand it was this 15th try and we all know where i'm going with this oh yeah you can you can see where the story is going you you know he missed on that try and my my my little bitty five thousand dollar net worth was just evaporated based on my attempt to make fifty thousand in ninety days off of five thousand um and uh you know bitcoin's hot your crypto's hot a lot of people making a lot of money on it right now it is as you said michael very very volatile and so it falls for me an old guy under the heading of getting rich quick and i have not found many people that get rich quick and so i and i don't like losing money i mean i i just telling that story from 25 35 years ago yeah i would think so i i i work too hard for the money that we get and that we get to keep after the government takes their share and so i don't like losing it so michael you can certainly do what you want to do but you called here we do not tell people to invest in highly volatile uh unpredictable investments and currencies of any kind fall in that category bitcoin would be the most volatile among those uh crypto would be the most volatile among those and statistically um you're going to probably get your uh you know you you might get it i mean the game stop thing when the kids were running the gamestop thing off of reddit that was extraordinary and they they made you know one guy called here he put in 3 500 bucks and he made 50 grand his hit i mean he was playing he was running running short on that thing and uh you know with those guys they were they took him to task he took them the woodshed it was interesting to watch from the outside but i've also got a friend that's invested in six restaurants and i i i go over there and eat yeah i didn't invest in any of them that's right and i like the people that run them but i you know you know what the failure rate on restaurants is it's like almost all of them fail yes you know they just don't make it and so uh but he's inve he's an investor so he wants to do that and that's fine i don't i he called me said you won't put money in this restaurant i'll go over and eat i will invest in your food yes yeah because well it's really true the way you teach investing and the way i live and the way you live that's right and that's how you base it there is risk involved of course but when you're talking about bitcoin or really volatile stocks like this it is i think it's no different than gambling i'm not trying to be cute with the words but there's investing which is i'm going to invest if you think about the way that word is then you talk about this kind of stuff and it is a form of gambling it really is you're going all right i'm going to put it in and hope that it keeps going up but this stuff could drop just like this out of nowhere at a minimum it's speculating not investing that's what gambling might be on one side and speculation yeah that's a bit of a strong statement investing investing might be but that's what investing investing implies the tortoise yes speculating implies the hair yes that's right gambling is the uh possum in the middle of the road okay but yeah that's what it feels like emotionally to me it really does like if i were to invest in bitcoin i'd be a got a better shot at bitcoin than you do the lotto so that's all i'm saying that is fair but both of them are dumb ideas in my mind and i and i didn't put any money in either one of them i've never bought a scratch off ticket in my entire life dave you're no fun no i just don't like giving my money away i can drive if i'm gonna have fun that way i'm gonna roll down the window with 100 bills out and call it a traffic jam you know what i'm going down the interstate that's more fun yeah well you're too competitive you want to have a shot at making some money not just i'm going to throw it in the air and to see what happens and you know of course everybody that's a bitcoin genius right now thinks dave ramsey's a out of touch boomer which is probably true but i'm also uh worth several hundred million dollars so let's go figure that out but um yeah i'd say look at the scoreboard take dave on all you want to but the scoreboard is a scoreboard and it does come down to your risk tolerance what do you well not just risk tolerance what is your goal and what do the data points tell you so i mean i've had people call this show investing in beanie babies really you remember when beanie babies were crazy i was a kid i remember my grandmother people invested they were like they were like such a hot commodity people were investing in them calling calling them as a collectible calling in here saying i put my kids college fund in beanie babies i did that actually for me that's right up there with bitcoin yeah i mean you know i got a lot but i did bob the differences i did by beanie babies as a gift no sharon sharon got not not as an investment but sharon was collecting them as a hobby and now okay that's good now the grand babies and the shih tzu play with them but they uh that's all they're good for but you know the thing is michael you can invest in whatever you want but the data points tell us that people who do get rich quick don't that's the bottom line out of studying ten thousand millionaires the number of them that got rich quick is very very very small the ones that were methodical and boring and didn't have a good story to tell on their golf course buddy when they're playing golf it's a fishing story with some stock that they got into they didn't have any of that they just were methodical they were boring and that's what i've done the second time and the second time i cap it first time i lost it all you do what you want to do