Famed personal finance guru advises dollar cost averaging in Bitcoin
American personal finance guru Suze Orman, founder of the Suze Orman Financial Group and author of ten bestselling finance books, says she recommends dollar cost averaging in Bitcoin. She sees advantages to the cryptocurrency, noting that it could “become a payment structure.”
Orman, whose show aired on CNBC from 2002 to 2015, was twice named to Time magazine’s 100 Most Influential People list and was named a personal finance educator for the U.S. Army and Army Reserve in 2016. She’s also won two Emmy Awards and eight Gracie
In other words, she’s not just any commentator.
recognized expert in the area of personal finance management
and shared why she thought the cryptocurrency would do well in the future.
In terms of how to get into Bitcoin
and how much to invest, Orman advised:
I think it’s something that is either long term or dollar cost averaging with very, very small amounts.
While the amount can vary from person to person, she gave as an example that it could be an investment of USD$100 a month.
Exchanges recommended by Orman
As Orman speaks to a general, non-crypto expert audience, in terms of where to buy BTC and other cryptocurrencies, Orman mentioned Nasdaq-listed exchange
Coinbase and Sam Bankman-Fried’s
FTX exchange. Previously, he had recommended Paypal. However, the company currently doesn’t allow users to transfer cryptocurrencies outside of its platform, al
He said the CEO said that will change soon.
In explaining why the price of Bitcoin rose recently, he cited Amazon’ s posting that it was offering employment for a ” Blockchain and Digital Currency Product Lead.” Orman wondered if the e-commerce giant is thinking about accepting bitcoins and other cryptocurrencies for payments. There were reports that the company will begin accepting BTC by the end of the year. However, as well told by DiarioBitcoin, Amazon denied the report and claimed that there was no specific plan. However, Orman has his suspicions and said, “When Amazon enters something, you have to pay attention to it.”
He also talked about Tesla, Elon Musk’s company, which began accepting BTC in March, but suspended it due to environmental concerns. However, Musk recently said Tesla will likely begin accepting BTC again. Another reason, Orman pointed out, was that there were USD $800 million in shorts at Bitcoin and, likeGamestop, investors had to cover their shorts, which would drive up the price of BTC. He also said that Wall Street firms and venture capital firms are starting to invest again in companies that deal with Bitcoin.
In addition, he noted that the cryptocurrency could become a payment mechanism, and explained:
‘It seems like the direction that Bitcoin is going in is that, unlike gold which you can’t use to make a purchase, it seems like people are starting to get ready for cryptocurrencies to not just be something like gold. It would actually possibly become a payment structure.
Orman added, “Now, if that were to happen when people are starting to take cryptocurrencies as payment, then Ethereum is a great place for you to look as well in terms of investing.”
Investing a little bit at a time
Prior to this, in a podcast on January 31 this year, Orman expressed similar views on investing in BTC:
“First of all, just to be clear about what I said about Bitcoin, I like <a href=”https://www.diariobitcoin.com/glossary/bitcoin/” target=”_blank” rel=”noopener”>Bitcoin and I am investing in Bitcoin. How much am I investing in Bitcoin? USD $1000 here. USD $1000 there. It’s not a lot of money. So I’m doing it little by little. And if those of you who want to do it, I have no problem with that. But USD$100 here, USD$100 there, but with money that if you lost every penny, you wouldn’t care.”
He added: “Personally, I think as time goes on, something will have to change with the way we use currency. And I think it’s very possible that Bitcoin could play an important role in is… You’re not buying Bitcoin in exchange for an exchange. You’re buying Bitcoin for a day in case it goes to USD$300,000 per Bitcoin. Now it’s likely to go to USD $300,000 per Bitcoin, but it could possibly go to $300 per Bitcoin. So, you should just put money in there to see what happens.”
Image by Unsplash