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Personal finance expert Suze Orman loves bitcoin.
Not as a currency, but as a long-term investment, the bestselling author told CNBC’s “Power Lunch” on Monday.
In April, she said she told listeners to her podcast, Women and Money (and everyone smart enough to listen), “All the money you can afford to lose, so I have no money. problem with you investing in bitcoin. “
She still gives that advice, but warns of the possibility that it could drop back to its lowest level in May of around $ 30,000 or even $ 26,000.
“You have to hold it for the long haul,” said Orman, author of “The Ultimate Retirement Guide for 50+”.
Bitcoin has surged in recent years, gaining widespread support from businesses and big banks. However, it is a volatile investment, leading many financial experts to urge retail investors wishing to invest.
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Currently, 14% of financial advisers use or recommend investing in cryptocurrencies, according to a recent survey by the Financial Planning Association and the Journal of Financial Planning.
Orman believes this to be a legitimate investment over time, in part because large companies have invested hundreds of millions of dollars in it.
On top of that, American youth love it, she said.
“You really have to validate them to know where they’re going.”
Bitcoin’s volatility can be highlighted by its skyrocketing after remarks from Tesla CEO Elon Musk, who said on Sunday that the electric vehicle maker will accept bitcoin transactions again in the future. Prices continued to rise on Monday after billionaire hedge fund manager Paul Tudor Jones told CNBC he preferred bitcoin.
Likewise, in May, when Musk tweeted that Tesla had suspended vehicle purchases using the cryptocurrency, the price fell about 5% within minutes.
“I don’t like that one man can go out and say something and control the market,” Orman said.
She also doesn’t like bitcoin to be what cybercriminals typically demand in ransomware attacks.
“Will the government come in and start regulating it and everything?” said Orman.
“I don’t know, but I still think for the long haul… it’s a place to put money and leave it, but not a lot.”
If you don’t like investing in bitcoin or any other cryptocurrency, there are other ways to market yourself. There are companies that invest in bitcoin or related technology.
For example, Orman bought MicroStrategy, which invests in bitcoin, in June 2020 at $ 125 a share, and then sold it for $ 1,030 a share.
She also likes payments firm Square, which bought $ 170 million worth of bitcoin in February. Earlier this month, CEO Jack Dorsey said the company is considering building a hardware bitcoin wallet.
“There are other ways to play it besides just buying the crypto itself,” Orman said.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
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