Personal finance guru and best-selling author Suze Orman has given advice on how to invest in bitcoin. She likes the cryptocurrency as a long-term investment despite regulatory uncertainty and the influence Tesla CEO Elon Musk seems to have on the bitcoin market.
Suze Orman’s Bitcoin Investing Advice
Suze Orman has shared her bitcoin investment strategy in an interview with CNBC Monday. The Suze Orman Financial Group founder, whose show ran on CNBC from 2002 to 2015, has written 10 consecutive New York Times bestsellers about personal finance. She was named twice on Time Magazine’s list of the 100 most influential people and was appointed as a personal finance educator for the United States Army and Army Reserve in 2016. In addition, she won two Emmy Awards and eight Gracie Awards.
Emphasizing that she likes bitcoin as a long-term investment but not as a currency, the famed author of the book “The Ultimate Retirement Guide for 50+” said:
You have to hold it for the long run.
She previously said, “Any money that you can afford to lose, then I don’t have a problem with you investing in bitcoin.” Orman also warned that the price of bitcoin could still sink to the $30,000 level or even to $26,000. The price of BTC is $40,134 at the time of writing based on data from Bitcoin.com Markets.
The famed financial advisor believes that bitcoin is a legitimate investment largely due to major corporations pouring millions of dollars into the cryptocurrency. In addition, she said the American youth likes it, noting, “You really have to validate them as to where they are going.”
Regarding Tesla CEO Elon Musk’s tweets affecting the price of bitcoin, Orman opined:
I don’t like that one man can come out and say something and it controls the market.
When Tesla announced that it had invested in BTC and would accept the cryptocurrency for payments, the price of bitcoin soared and then plummeted when Musk said that his electric car company had suspended accepting bitcoin due to environmental concerns. When Musk clarified that Tesla will resume accepting BTC “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
Orman also dislikes bitcoin being used in ransomware attacks. She questioned:
Will the government come in and start to regulate it and everything?
The Biden administration has made ransomware a priority and the G7 leaders have called on Russia to urgently “identify, disrupt, and hold to account” ransomware hackers and those abusing cryptocurrency to launder ransoms.
Despite regulatory uncertainty and Musk seemingly affecting the price of bitcoin with his tweets, Orman said:
I still think for the long run … it’s a place to put some money and just leave it, but not a lot.
Orman further pointed out that besides purchasing cryptocurrencies directly, investors can also gain exposure to bitcoin or other cryptocurrencies by buying stocks of companies that invest in BTC or are engaged in crypto projects. “There are other ways to play it other than just simply buying the crypto itself,” Orman suggested, naming Microstrategy and Square as examples.