This week was marked by heated debates around global payments, financial shifts, and crypto trends. Here’s a recap.
Elon Musk’s “Massive Incentive” to Move Money
Tesla and SpaceX CEO Elon Musk sent shockwaves through the global payments landscape this week when he put forth a major initiative to modernize currency. Via Twitter, Musk announced a (presumably) anonymous benefactor was offering a “massive” monetary award for initiatives that help move funds more effectively and securely. Musk further highlighted his own struggles with international payments and the complexities of the space, suggesting alternative solutions were needed.
Dave Ramsey’s Rejection of De-Dollarization
On the other side of the global payments debate, popular personal finance expert and radio host Dave Ramsey weighed in on de-dollarization. Taking a decidedly against-the-grain stance, Ramsey suggested that decentralized crypto solutions won’t solve today’s economic issues. Specifically, he highlighted the complications that come with the decentralized approach, and argued that the USD can be adjusted and revised as needed, using existing financial infrastructure.
BTC Congestion Relief
Meanwhile, the crypto sector itself faced its own share of challenges this week. In particular, Bitcoin’s network was overwhelmed by a sudden influx of transactions and faced serious congestion issues, resulting in slow speeds and higher fees. However, the Bitcoin roadmap called for solutions designed to relieve these issues, including larger block sizes and more efficient address formats.
And More
Finally, among other developments this week were Binance’s planned move to Malta, the introduction of IBM’s Blockchain World Wire, a major reshuffling of Coinbase’s member support team, and more. With the payments industry in a state of flux, it’s sure to be an interesting and eventful summer.
Elon Musk’s Advice
In a recent tweet, Elon Musk has argued that it is better to keep your money out of banks, instead keeping it in better investments like index funds. He makes his point by saying that having money in banks is like “keeping it under your mattress”, as banks offer very little in terms of returns.
Despite these minimal returns, the Musk claims that banks are quite capable of losing your money quickly. To illustrate this, he references the 2007-2008 financial crisis, where a number of banks had to be bailed out.
Dave Ramsey Responds
In response to Musk’s statement, Ramsey has offered some contrasting advice. Rather than simply keeping all of your money outside of the banks, Ramsey instead recommends that you make use of banks in moderated amounts.
He argues that around 10-15% of your liquid assets should be kept in a bank for day-to-day purposes, such as emergency funds and quick accessibility to cash. Ramsey strongly advises against investing all of your money outside of banks, as this runs the risk of you being unable to access it in moments of emergency.
Ramsey goes on to state that while investments like index funds can be beneficial in recouping costs, they aren’t necessarily the most suitable option for emergency funds, citing their volatile nature as a major issue.
Ramsey’s Recommendations
So what does Dave Ramsey recommend as an alternative to bank accounts? One should put their emergency funds in financial instruments such as savings accounts, high yield savings accounts and money market accounts. All of these financial instruments offer the advantage of having easy accessibility and low levels of risk.
For investments that make a greater return, Ramsey suggests government-backed bonds and CDs, both of which have a longer time span than bank accounts do. An additional benefit is that these investments are typically fixed and offer protection against inflation.
In conclusion, Ramsey states that it is important for investors to utilize banks, especially when it comes to matters of emergency funds. Though index funds can be very helpful in making returns, they are not the most secure instrument when taking into consideration immediate liquidity.
This week, tech entrepreneur and CEO of Tesla, Elon Musk, highlighted a “massive incentive” driving people to move their money out of banks, while radio host and financial guru Dave Ramsey dismissed fears of de-dollarization. Meanwhile, the Bitcoin network saw congestion recede, among other news in the cryptosphere. Here’s a look at some of the biggest stories in the cryptocurrency world through the week.
The conflict between Elon Musk and Dave Ramsey on the issue of bank money has been one of the most talked-about topics in the cryptocurrency world this week. While Musk has argued that it is better to keep your money out of banks, Ramsey has offered a contrasting opinion, recommending that people make use of banks in moderated amounts. He suggests that around 10-15% of your liquid assets should be kept in a bank for day-to-day purposes, such as emergency funds and quick accessibility to cash. Ramsey also recommends government-backed bonds and CDs for investments that make a greater return.
At the same time, the Bitcoin network saw congestion recede, with the number of daily transactions hitting a new, previously unseen top. This happened against the backdrop of de-dollarization fears, which means that countries and companies around the globe are seeking alternatives to the US Dollar. The tangible results of Bitcoin’s increasing global acceptance can be seen in the data for the world’s most popular cryptocurrency.
Elon Musk’s Advice
In a recent tweet, Elon Musk has argued that it is better to keep your money out of banks, instead keeping it in better investments like index funds. He makes his point by saying that having money in banks is like “keeping it under your mattress”, as banks offer very little in terms of returns.
Despite these minimal returns, the Musk claims that banks are quite capable of losing your money quickly. To illustrate this, he references the 2007-2008 financial crisis, where a number of banks had to be bailed out.
Dave Ramsey Responds
In response to Musk’s statement, Ramsey has offered some contrasting advice. Rather than simply keeping all of your money outside of the banks, Ramsey instead recommends that you make use of banks in moderated amounts.
He argues that around 10-15% of your liquid assets should be kept in a bank for day-to-day purposes, such as emergency funds and quick accessibility to cash. Ramsey strongly advises against investing all of your money outside of banks, as this runs the risk of you being unable to access it in moments of emergency.
Ramsey goes on to state that while investments like index funds can be beneficial in recouping costs, they aren’t necessarily the most suitable option for emergency funds, citing their volatile nature as a major issue.
Ramsey’s Recommendations
So what does Dave Ramsey recommend as an alternative to bank accounts? One should put their emergency funds in financial instruments such as savings accounts, high yield savings accounts and money market accounts. All of these financial instruments offer the advantage of having easy accessibility and low levels of risk.
For investments that make a greater return, Ramsey suggests government-backed bonds and CDs, both of which have a longer time span than bank accounts do. An additional benefit is that these investments are typically fixed and offer protection against inflation.
In conclusion, Ramsey states that it is important for investors to utilize banks, especially when it comes to matters of emergency funds. Though index funds can be very helpful in making returns, they are not the most secure instrument when taking into consideration immediate liquidity.
This week, tech entrepreneur and CEO of Tesla, Elon Musk, highlighted a “massive incentive” driving people to move their money out of banks, while radio host and financial guru Dave Ramsey dismissed fears of de-dollarization. Meanwhile, the Bitcoin network saw congestion recede, among other news in the cryptosphere. Here’s a look at some of the biggest stories in the cryptocurrency world through the week.
The conflict between Elon Musk and Dave Ramsey on the issue of bank money has been one of the most talked-about topics in the cryptocurrency world this week. While Musk has argued that it is better to keep your money out of banks, Ramsey has offered a contrasting opinion, recommending that people make use of banks in moderated amounts. He suggests that around 10-15% of your liquid assets should be kept in a bank for day-to-day purposes, such as emergency funds and quick accessibility to cash. Ramsey also recommends government-backed bonds and CDs for investments that make a greater return.
At the same time, the Bitcoin network saw congestion recede, with the number of daily transactions hitting a new, previously unseen top. This happened against the backdrop of de-dollarization fears, which means that countries and companies around the globe are seeking alternatives to the US Dollar. The tangible results of Bitcoin’s increasing global acceptance can be seen in the data for the world’s most popular cryptocurrency, with 375,737 transactions per day and $891 billion total value transacted.