Suze Orman: 1 Reason You Should ‘Absolutely’ Own Bitcoin
Written by
Kellan Jansen
Edited by
Jenna Klaverweiden
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Suze Orman is a financial host and author, and in a recent interview with CNBC, she said she believes “everyone should absolutely” own the cryptocurrency bitcoin. Usually, people who support bitcoin as an investment view it as a store of value — but Orman doesn’t.
Here’s the real reason you should own the No. 1 crypto asset by market cap, according to Orman.
Young People Are Fascinated by Bitcoin
Orman’s main idea is that young people are excited by bitcoin, and they’re likely to continue buying it for years. This, she argued, should be positive for the coin’s price over time.
Orman doesn’t buy into the idea that bitcoin will become a store of value like gold or supplant the dollar. But she does view it as a speculative asset that may still have room to run in the future.
However, Orman doesn’t recommend putting all of your money into the crypto market. She said you should invest only what you can afford to lose. That aligns with the general recommendation of allocating no more than 5% of your portfolio to crypto.
Orman is correct in pointing toward younger generations’ interest in cryptocurrency. Millennial and Gen Z investors are now as likely to own crypto as they are to own real estate. One reason for that could be dissatisfaction with the current financial system.
But Orman doesn’t evaluate further than this. She argued that the buy-in from young people is all that really matters. In other words, as long as people continue believing in bitcoin, its price should keep increasing.
Is Orman Right About Bitcoin?
No one can predict the future price of bitcoin today. This is probably why Orman recommended putting only a small percentage of your portfolio in the asset.
But that doesn’t leave you with much actionable information. Should you follow Orman’s advice and buy bitcoin? To make that decision, you have to consider her reasoning. In other words, will young people remain interested?
Thanks!
For example, some people are interested in crypto only because they believe it can make them rich. Bitcoin has, in fact, made some people millionaires. For instance, if you put $100 into bitcoin on Jan. 1, 2013, that would be worth over $476,000 today. But you can’t expect similar growth forever.
People who are interested in bitcoin for its speculative nature are recognizing this and investing in other assets. For example, bitcoin has risen by well over 100% over the past 12 months, but solana has increased by more than 600% over the same period.
Don’t Forget the Risks
Cryptocurrency has become a multitrillion-dollar industry in a short amount of time. It still faces regulatory uncertainty in the U.S. and abroad. Plus, there’s no government backing bitcoin like there is the U.S. dollar. The value of the asset lies in the fact that people believe in it — but that could change sooner than you think.
That’s a long way of saying you should follow Orman’s advice about limiting your exposure. Whether you buy her take on bitcoin or not, you never want to risk more than you can afford to lose on an asset like this.
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