How Does Mining Bitcoin Work?
Ho boy! Bring on the controversy! Btw, did you see this? Dave is no stranger to it. Those are just lines of code. We trust the banks and governments because, until now, we had no other choice. On that note Those who live in the Ukraine and Venezuela right now are losing insane amounts of purchasing power due to that in my opinion misplaced trust.
Serious amounts of criminal activity are taking place there. Why should we trust them? As for bitcoin being a bad currency, that's kind of like saying in the early days the Internet wouldn't succeed because to send an email message you had to use a terminal and code out SMTP commands directly not to mention the IP and TCP protocol layers underneath. We're in the early days and things are still complicated.
A share of Berkshire Hathaway can fluctuate by thousands of dollars but no one notices because of the huge share price. Many believe when the bitcoin marketcap increases, the volatility will be minimized. We've seen that in just a few short years already, percentage wise. Thanks for commenting, Jeff. The problem with the incumbent players in Finance is that they are wedded to not only their 'traditional economics education' but they also attempt to analyse any new development that arrives like derivatives, swap options, hedge bets etc in terms of current financial modelling tools.
Criticising bitcoin for its ability to be used for drugs, money-laundering , terrorism etc is very easy as all these activites apply to fiat currencies of which they are accustomed. But it totally misses the point that the blockchain has never existed before, and the applications that do, and will in the future, sit on top of the blockchain dont, and wont, fit it any existing analytical model.
All their attempts to try and define where bitcoin fits therefore in our existing money-market structures will never understand that it is the FUTURE where bitcoin actually lives. The real relevance of the blockchain lies in the future - when "intelligent machines" driven by algorithm controls will wander the world of the internet and will use 'electronic decentralised currency' to trade, gain access, share data etc.
I'm working on an idea at the moment where I am using my 'crypto-rat' characters to create story-lines that take bitcoin into this area of future application - not as 'science fiction' but as 'science-reality' That's why I created the BitcoinRat character! Very cool!
Thanks for sharing. My favorite line: "only decentralised incorruptible currency will be universally accepted by trans-national wandering bots.
Great post! I've actually been very reluctant to look into Dave Ramsey's financial solutions despite knowing I could benefit from them, until very recently. What changed?
Basically, my involvement with Bitcoin and other cryptocurrencies provided a new income stream which makes aggressively paying off my consumer debt possible where it really wasn't before. The tone of this post sounds like you're taking his opposing position on Bitcoin a bit personally. Sure, some of the terms he uses are a bit harsh, but that's his personality. He is controversial and says people are stupid for lots of things and lots of reasons.
It doesn't mean he is wrong about this. No good financial advisor is going to get behind a highly volatile and speculative brand new currency, no matter how much potential it has. If he even mentions that he likes it, some of his followers may buy into it thinking they will make money, and may actually end up losing quite a bit.
He can't risk that, so he sticks with stuff that's proven to make money in the past. Seems like a stance that makes sense given his role and his audience. That's just the crux of the issue, though. I am not a speculator or particularly financially savvy, but I and many others have been able to make money through involvement with Bitcoin because it actually is possible for ordinary people to do so, provided you go into it with an open mind and balanced attitude.
I would not recommend Bitcoin as an "investment" either for many of the same reasons, but that doesn't mean it has no use or value. The real opportunities lie more in trading your skills for Bitcoin and then either spending those Bitcoins to buy something you want or trading them into fiat and then using the proceeds to better your life, such as pay off debt.
A trusted financial consultant such as Dave Ramsey would actually be doing his clients and audience a tremendous disservice to ignore a way that they can improve their financial situations, so I really hope that he takes BeStoked up on his offer to learn more.
Why would you trade your skills for Bitcoin and then convert that into a fiat currency like USD? That makes absolutely no sense. These are people who can't even manage basic finances, and most of them probably don't even know how to trade stocks. You want him to endorse a highly volatile experimental digital currency as a way to make money or as a good store of wealth?
You're insane. To answer your first question, because it's easier. The Bitcoin community is just chock full of opportunity that for some may be harder to connect with in the fiat world--less competition for one. It might be an early adopter bonus, but one that will be around for a while.
Just because someone got into debt over their head doesn't make him or her stupid, or unable to evaluate the potential risks and rewards of an opportunity.
The fiat monetary system is debt based by nature or design? Successfully getting out of debt and taking back control of one's finances could very well involve some out of the box thinking and creativity. Doesn't Ramsey recommend people mired in debt take on a second job or something? If that "second job" happens to involve getting paid in Bitcoin, is that really so bad if it's actually helping that person move forward financially?
I wouldn't go so far as to say Ramsey or any financial adviser should endorse Bitcoin or any other opportunity. There is no one size fits all financial solution for everyone, so things to do with Bitcoin won't work well for everyone. But knowing something about it and being able to speak intelligently about its strengths and weaknesses doesn't seem like that would be hurting anything.
By the way, I first got into Bitcoin the way most people get into Bitcoin, which is I bought some. But after a year, I have found that buying Bitcoins is neither the only nor the best way to get them unless you're rich--have money you can afford to lose. And if what I just said makes no sense to you, then with all due respect, you really don't know too much about it.
You just don't get it. I never called anyone stupid, either - so don't put words in my mouth. Great, so you understand it and you've made some money it - good for you. People make money on penny stocks too, but you won't find anyone recommending that people invest in them or get paid in shares of stock that they then have to trade to pay off their debt. I'm not saying these things because I don't understand Bitcoin or the promise behind it - I am saying these things because that's the economic reality of Bitcoin today.
You could very well "loose your butt" as Dave Ramsey says, and lots of people have with Mt. Gox and now Flexcoin, too. Just because the monetary system is based on debt doesn't mean that you personally inherit that debt.
It affects the currency in other ways, like devaluation, inflation, etc. Hey Vance Lucas, thanks for your comments! I can't speak for wiser , but I'll share my thoughts. For a financial adviser to not be thinking about and looking to the future, in my opinion, limits their long term effectiveness.
You make some great points about his audience and the risk involved here, but the point of my post was to highlight the comments he made which were IMO factually untrue when it comes to the Bitcoin technology. If I'm taking it personally it's because I care about Dave and his reputation in the industry over the long term.
This video in the future could make him look silly if Bitcoin does take off, and I contacted him so he could avoid that. Sure, that's a big if, but I think there are ways to protect his audience from something he feels is extremely volatile without saying things which aren't true.
Just this morning I listened to the third hour of Monday's show and at around he has another rant about it. This one, I feel, is a little more cautioned because he hedges his words a bit with the possibility it might have value in the future. He said something along the lines of "In ten years, it may have stabilized". If we analyze disruptive technology adoptions historically, I think it could happen sooner than that and, as with many other technology breakthroughs, I don't think it has to fully replace the existing system to have value.
That said, he still calls it "bitcon" and the "The Iraqi Dinar of the Internet. I just don't see that. Dave may never change his opinion on bitcoin. Plenty of people use credit cards and love them and Dave will never change his opinion on that topic either.
I also think there's a risk for him to be seen as so out of touch with where things are going. He could lose some relevance to his audience. If bitcoin does take off, shouldn't we have people like Dave Ramsey explaining how to use it safely? I wish Dave would spend more time talking about what money actually is.
Right now, money is debt. It's based off debt and we have to inflate the existing dollars to pay for future dollars. That's not a sustainable plan at all. Bitcoin could be a better form of money, if it stabilizes in the future. Just as he talks about spreading things around into multiple baskets, why not put a tiny bit in things like gold, silver and bitcoin? He thinks those are terrible investments, but what if they are more like insurance?
Thanks again for your comments. Many in the bitcoin community need more pushback on their ideas. Buying into a future speculation while still having debt isn't a great plan, IMO, because it introduces way too much risk.
I wouldn't be involved in bitcoin if I still had consumer debt.
Bitcoin is digital currency that was created in It is accepted by over , retailers although no big names yet , and the transactions are made anonymously, bypassing banking institutions and governments. What does that mean for you and your investments? Are bitcoins and other cryptocurrencies the next big thing, or are they just a passing investing fad you need to steer clear of? Bitcoin is the most widely-known type of cryptocurrency, or digital currency. There are no bills to print or coins to mint. Like gold, bitcoins are worth what people are willing to pay or exchange for them. Some of the others include Ethereum, Ripple and Bitcoin Cash, a totally different currency despite its namesake. However, none are as widely accepted as their prototype, bitcoin.
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Heard Dave Ramsey speaking foes other night on his growth mutual fund strategy and he mentioned reading one of his fund's prospectus and said this fund had a 78 year history and Tried some searches but not sure how to find this specific fund.
It lists January 1, as its inception date, which is just over 78 years ago. As shown at the http://trackmyurl.biz/what-do-i-need-to-accept-bitcoin-7389.html above, it lists its cumulative annualized returns as of December 31, to be It does appear to be a relatively popular fund, with over 3.
Rmsey fund is targeted primarily at American large-cap equities, and abuot actively managed. You'll find people on both sides of that fence. Depending upon your risk appetite, however, it may be worth looking a bit deeper to compare the fund's volatility with that of the overall market; a similar return with lower volatility might be desirable.
First a disclaimer. The most difficult questions to answer are ones that ask what someone else was talking about with no solid quote. So I find it unremarkable that some fund performed as well as this less. You should also know the average and the CAGR are not the. All that said, there is no guarantee the future returns will mimic dhat past. I probably answered the question I heard rather than the one you asked.
I hope you learned something useful nonetheless. The entire front is obviously to entice the listener to call one of his sponsored investment advisors. Beware always of what you hear. Everyone has an angle and if what does dave ramsey have to say about bitcoin really cared selflessly he would mention at least one of the fund names or ticker symbols on his program as he doew so highly of.
I listen to Bob Brinker's radio program every week. Never does Bob Brinker hide a fund name or ticker symbol. Podcast: We chat with Major League Hacking about all-nighters, cup stacking, and therapy dogs. Listen. Home Questions Tags Users Unanswered. Ask Question. Asked 7 years, 9 months ago. Active 4 years ago. Viewed 78k times. Valien Valien 1 1 gold badge 7 7 silver badges 16 16 bronze badges.
Did you check his Archive at daveramsey. Jason R Jason R 1, 1 1 gold badge 11 11 silver badges 16 16 bronze badges. Thanks for the info and link. Very helpful answers from you and JoeTaxpayer. Just an update on. I go here listening to his show the other day and he specifically mentioned he has investments in the American Funds what does dave ramsey have to say about bitcoin.
So you were right on! For what it's worth, money chimp uses the data from Schiller. I'll check if Bob has a note how he produced numbers early on. John Bensin I care more about my potential returns in the investment market as it relates to my retirement. As you rsmsey your "working years", it makes me wonder why financial advisors don't calculate returns based on the "working years". For example, if I invest in a k from age 25 to 65, I'm mostly interested in my return performance for 40 years, not the totality of the stock market.
Why did what is the best bitcoin casino digital currency compute 1.
The David seems to miss this point. You can't spend average. Ben Miller - Reinstate Monica Roger Roger Bob Brinker's and Dave Ramsey's shows are completely different. Brinker's show is all about market timing tips and stock tips. He promotes a newsletter containing his tips. The focus of What does dave ramsey have to say about bitcoin show is not investing, and ramzey philosophy is that people should learn about any investments that they make before they invest.
That is why he does not mention individual funds on the show, and why he refers people to investment advisors when they are ready to invest. Also, a comment on the accepted answer confirms that Ramsey has mentioned American Funds on-air. Yes, Dave Ramsey has mentioned American funds the family, but to my knowledge he never specifically names a fund.
And he clearly knows the difference between them, because he explained the difference on a recent podcast episode to a listener. I'm sure he has his reasons, my guess is similar to Ben's--the focus is not on specific investing advice, but having a financial plan.
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Should I buy more Bitcoin with my credit card? - Dave Ramsey
Millionaires don’t get rich on credit card rewards
BitCoin was the first cryptocurrency, created in and is the most well-known. You're insane. Plenty of people use credit cards and love them and Dave will never change his opinion on that topic. Ill admit its very hard for me to understand that thinking when all money has debt attached to it. He points out that people lose money all the time chasing easy money. Over all trend proves that it won't crash anytime in the near future. Grandpa Doesn't understand times are changing. Before money was debt money i. I see it as the most powerful system ofcontrol tthat's ever existed. I know all about investing, but I still work with a financial advisor! I gladly accept truth. Poverty is built in. Very cool! Gox and now Flexcoin. It's not that simple. This is another huge risk of the cryptocurrency world.