By Michelle Fox
Personal finance expert Suze Orman likes bitcoin.
Not as a currency, but as a long-term investment, the bestselling author told CNBC’s “Power Lunch” on Monday.
Back in April, she said she told listeners of her podcast, “Women & Money (And Everyone Smart Enough To Listen)” that “Any money that you can afford to lose, then I don’t have a problem with you investing in bitcoin.”
She’s still giving that advice, but is warning of the possibility that it can go back down to its May lows of about $30,000 or even to $26,000.
“You have to hold it for the long run,” said Orman, author of “The Ultimate Retirement Guide for 50+.”
Bitcoin has surged over the past several years, gaining some mainstream support from corporations and big banks. However, it’s a volatile investment, which leads many financial experts to urge caution to retail investors who want to pile in.
Currently, 14% of financial advisors are using or recommend investing in cryptocurrencies, a recent survey from the Financial Planning Association and the Journal of Financial Planning found.
Orman believes it is a legitimate investment over time in part because major corporations have poured hundreds of millions of dollars into it.
On top of that, American youth like it, she said.
“You really have to validate them as to where they are going.”
Bitcoin’s volatility can be evidenced in its surge after remarks from Tesla CEO Elon Musk, who said on Sunday that the electric vehicle maker would accept bitcoin transactions again in the future. Prices continued to rise Monday after billionaire hedge fund manager Paul Tudor Jones told CNBC he favored bitcoin.
Similarly, in May, when Musk tweeted Tesla suspended vehicle purchases using the cryptocurrency, the price dropped about 5% within minutes.
“I don’t like that one man can come out and say something and it controls the market,” Orman said.
She also doesn’t like that bitcoin is what cybercriminals usually demand in ransomware attacks.