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Usually, people who support bitcoin as an investment view it as a store of value but Orman doesnt.
Heres the realreason you should own the No.
1 crypto asset by market cap, according to Orman.
This, she argued, should be positive for the coins price over time.
But she does view it as a speculative asset that may still have room to run in the future.
However, Orman doesnt recommend putting all of your money into the crypto market.
She said you should invest only what you could 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 thecurrent financial system.
But Orman doesnt 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 doesnt leave you with much actionable information.
Should you follow Ormans advice and buy bitcoin?
To make that decision, you have to consider her reasoning.
In other words, will young people remain interested?
For example, some people are interested in crypto only because they believe it can make them rich.
Bitcoin has, in fact, madesome people millionaires.
But you cant expect similar growth forever.
People who are interested in bitcoin for its speculative nature are recognizing this and investing in other assets.
Dont 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, theres no government backing bitcoin like there is the U.S. dollar.
Thats a long way of saying you should follow Ormans advice about limiting your exposure.
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