“This is wrong… You will not be a millionaire”

Family and money don’t always mix well, as Dave Ramsey said when Philip from Washington, DC, called with a predicament. Two years earlier, Philip’s mother borrowed $7,000 from him – half of his savings – to invest in Bitcoin. Fast forward to 2020 and the investment has not paid off as expected. That’s when Philip decided to call Ramsey for advice.

During the call, Philip explained that he needed the money to pay for school, but his mother refused to pay him back, convinced that Bitcoin would still make them millionaires.

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Ramsey didn’t hesitate to give his opinion. “No, it’s wrong and wrong and wrong,” he said. That a parent would borrow money from their child for a risky investment like Bitcoin left him shaking his head. “If you’re such a big loser, you shouldn’t be investing,” Ramsey added, pointing out that it’s irresponsible to gamble with someone else’s savings, especially when it’s your child’s.

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Poor decisions all around

Philip explained that his mother still won’t return the money because she thought Bitcoin would make them rich. Ramsey’s response was firm: “When you borrow money from your kid and they ask him back because he’s in college, you give him the money back. You’re not a loser.”

Ramsey was also clear about Bitcoin’s potential: “You’re not going to be a millionaire in Bitcoin; you’ll be $7,000 poorer.” He pointed out that relying on Bitcoin to get rich was a bad bet.

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Focus on what matters: education

As a sophomore, Philip now had no money for tuition. Ramsey pointed out that Philip’s education, especially majoring in economics and computer science, would lead to far better opportunities than a Bitcoin gamble ever could.

Ramsey’s View of Bitcoin

Ramsey didn’t hold back on Bitcoin, comparing it to gambling and letting him know that you have a better chance of becoming a millionaire in Vegas. He explained that Bitcoin lacks the trust that more stable currencies have, and until that changes, it remains a risky, unpredictable investment.

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While many people have certainly profited from investing in Bitcoin, Ramsey’s stance was clear – he’s not a fan.

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Bitcoin value today

Ironically, the value of Bitcoin has increased since the January 2020 call. Back then, $7,000 in Bitcoin would have been worth about $11,500 in October 2020. By 2024, that $7,000 investment would be worth about $37,007. While this is a notable increase, it still would not have made Philip’s mother a millionaire as she had hoped.

Bitcoin may not be for Ramsey, but it continues to attract significant investor interest, with record levels of potential investors. Motley Fool Ascent’s 2024 Cryptocurrency Investor Trends Survey shows that 43% of respondents are likely to invest in cryptocurrencies in the next year.

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Bottom line for Philip: get your money back

Ramsey ended the conversation by encouraging Philip to calmly but firmly ask for his money back. He encouraged her to let him know she wanted her money back immediately. “That’s wrong,” Ramsey advised. He suggested Philip explain to his mother that regardless of their disagreement about Bitcoin, it was still his money and he needed it for school.

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This article Mom Borrows $7,000 From Son To Buy Bitcoin, Dave Ramsey Says He’s Demanding Money Back: ‘It’s Wrong… You’re Not Going To Be A Millionaire’ originally appeared on Benzinga.com

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