"Ramsey's concern is that the assets are too volatile, with no clear way to predict where the value is trending, stating at one point: "It's like riding the worst roller coaster that went off the rails at Six Flags," and advising people to look at past performance to see what he means. "Chart the volatility of Bitcoin, and then smile at me with a serious face and tell me this is a solid investment, and I'll tell you you're smoking crack," he said."
"he doesn't think that this asset class has reached that point yet. Right now, Ramsey believes that it is simply too risky, and he's actually gone so far as to compare the crypto craze to past products like Pokémon cards, Beanie Babies in the 1990s, and toilet paper during COVID-19, all of which saw price spikes due to hype and perceived scarcity before collapsing."
Cryptocurrency exhibits extreme volatility and speculation, leading to comparisons with past fads like Pokémon cards, Beanie Babies, and pandemic-driven product shortages that later collapsed. Observers warn that price spikes driven by hype and perceived scarcity can reverse dramatically, making crypto an unsuitable substitute for researchable investments. Some commentators characterize certain crypto investors as making poor money-management decisions. Others acknowledge potential future maturation and stability for crypto but maintain that current market behavior lacks predictable metrics needed to treat crypto like traditional investments.
Read at 24/7 Wall St.
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