Financial adviser and bestselling author Suze Orman, known for her influential role in financial advice and her long-running Suze Orman Show on CNBC, recently shared her views on Bitcoin and its potential future in a conversation with her former network. Orman, who has been a prominent figure in personal finance, discussed the role of cryptocurrency in the portfolios of the next generation of investors.
Bitcoin’s Growing Appeal
In her recent interview with CNBC, Orman expressed a notably optimistic stance towards Bitcoin. While many of her peers in the financial advisory sector have been cautious about cryptocurrencies, Orman has advocated for Bitcoin’s potential, urging that everyone should consider having it in their investment portfolio. This recommendation stands out, especially given her previous role in hosting one of CNBC’s top finance shows from 2002 to 2016.
Orman emphasized that:
“As younger people make more money and mature, [Bitcoin] will be one of their investments of choice, and that will cause it to go up.”
Orman’s Investment Approach
Despite her positive outlook on Bitcoin’s future, Orman has taken a cautious approach in her own investments. She noted that while she recognizes the potential of Bitcoin, she prefers to invest through Bitcoin exchange-traded funds (ETFs) rather than directly in the cryptocurrency. Her preference for ETFs stems from a desire to avoid the pitfalls associated with direct cryptocurrency ownership.
Orman articulated her concerns:
“I don’t think it will ever be a currency or a store of value,” Orman said. “But because the younger generation has a fascination with it — and you see the energy — a whole lot of people having interest in it,” she added, “eventually it could very well catch fire.”
Orman’s cautious optimism is reflected in her choice of ETFs, as they provide a layer of security and mitigate the risks associated with direct cryptocurrency ownership. She mentioned her wariness about potential issues like those seen with the FTX collapse and her difficulties understanding how cryptocurrency wallets work, particularly the risks of losing access due to misplaced passcodes.
Orman’s message was clear: while she acknowledges the risks, she firmly believes in Bitcoin’s potential and its role in future investment strategies. She encouraged viewers and investors to:
- Consider Bitcoin Exposure: Orman stressed the importance of having some exposure to Bitcoin in an investment portfolio.
- Understand the Risks: She advised that investors should be prepared for the possibility of losing their money and only invest what they can afford to lose.
Overall, Orman’s insights reflect a balanced view, recognizing Bitcoin’s potential while also highlighting the importance of cautious and informed investing. As the next generation of investors continues to grow and mature, Bitcoin could indeed become a significant component of their financial strategies.
