Why Suze Orman Won’t Sell Bitcoin No Matter What
By Ruchi GuptaJun. 25 2021, Published 2:56 p.m. ET
Recently, personal finance guru Suze Orman revealed that she has invested $5,000 in Bitcoin. The disclosure came after El Salvador made Bitcoin an official currency in the country and Cathie Wood bought more shares in a Bitcoin trust.
From Bitcoin to Dogecoin and the son BabyDoge, cryptocurrencies are just starting to rebound after a recent wave of selling. China’s expanding crackdown and Mark Cuban’s loss in a Titan token investment are some of the factors that caused some investors to withdraw from cryptos, which caused prices to crash across the board.
What does Suze Orman say about Bitcoin and crypto investing?
Suze Orman used PayPal to purchase Bitcoin. The personal finance adviser and CNBC host said that PayPal saved the day for her. She tried Coinbase but it didn’t work well for her because it made things look too complicated. She liked PayPal because it didn’t require her to create an external crypto wallet. In addition to offering crypto purchases, PayPal also offers crypto trading services through its Venmo app.
Orman sees the China crackdown and possible tightening of crypto regulations in the U.S. as possible risks for Bitcoin. For example, the rise of ransomware attacks where hackers demand payments in crypto could cause U.S. authorities to move in ways that could have a negative impact on crypto investors. However, she's sticking with Bitcoin and doesn’t plan to sell regardless of the regulatory headwinds.
Shortly after Orman revealed her Bitcoin investment, Tesla CEO Elon Musk and Twitter and Square CEO Jack Dorsey agreed on July 21 to discuss Bitcoin at “The B Word” event. Orman is concerned about how people like Musk move crypto markets with tweets.
Bitcoin and the broader cryptocurrency sector fell in May after Musk announced that Tesla stopped accepting Bitcoin payments. The electric vehicle billionaire criticized the crypto’s environmental profile. Later, Musk said that Tesla was open to resuming Bitcoin payment if most of its operations shifted to renewable energy. That was followed by a broad rise in cryptocurrencies.
Suze Orman buys MicroStrategy stock for Bitcoin exposure
Before PayPal made it easy for Orman to buy Bitcoin, the celebrity financial adviser invested in MicroStrategy stock to gain exposure to the flagship crypto. MicroStrategy holds billions of dollars worth of Bitcoin on its balance sheet.
Suze Orman and Jim Cramer predict Bitcoin price drop
Although Orman is bullish on Bitcoin for the long term, she sees regulatory headwinds driving its price down to $12,000–$15,000 levels. Jim Cramer has also predicted a Bitcoin plunge. Recently, Cramer said that he sold most of his holding in the crypto. He's waiting to buy it back when it drops to $10,000–$12,000 levels.
Suze Orman’s advice on crypto investing
Even before revealing her own Bitcoin holding, Orman has long recommended putting some money in Bitcoin. She says that there isn't a problem investing in crypto if it's an amount you can afford to lose. She also cautions against putting a lot of money in cryptocurrencies.
For those not interested in holding Bitcoin directly, the expert sees other ways of getting exposure to it like investing in stocks of companies that have invested in it. Besides MicroStrategy, the other companies that hold Bitcoin on their balance sheets are Square and Tesla. Investors can also gain indirect exposure to Bitcoin through Cathie Wood’s funds with stakes in crypto trusts.
