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Few financial assets in history have shifted from a wildly speculative asset to a potential reserve currency in such little time.

And yet, here we are, in a year where a leading presidential candidate is talking about making the U.S. a leading Bitcoin power player.

Former Morgan Stanley Wall Street executive Caitlin Long, now CEO of Custodia Bank, recently joined TheStreet Roundtable to share how important Bitcoin's evolution is for retail investors — and mistakes to avoid. She shared her own experiences through three different Bitcoin bull cycles, including the times she used to pay for Christmas gifts with Bitcoin.

"It's no longer a payment system where you can pay for your cup of coffee," she said. "It is now a large value payment system, so it has evolved in the U.S. over time from a payment system to a store of value. And I do believe it will eventually become a world reserve currency, which makes it an even more valuable store of value."

Long highlighted the unique aspects of Bitcoin ownership, stating, "You have the ability to own your own data, to literally be your own bank with this asset." She contrasted Bitcoin with other financial assets, such as stocks and commodity futures, emphasizing its appeal in regions where people have less trust in financial institutions. "Those financial institutions have abused that trust," Caitlin Long noted, pointing out that many in the U.S. see Bitcoin as a speculative asset. However, she issued a warning about centralized exchanges that have failed in recent years: "You need to recognize you're not owning Bitcoin, you're owning an IOU."

As the founder of Custodia Bank, Caitlin Long has fought and advocated for more safe storage solutions, and urged retail users to understand the importance of self-custody.

While Bitcoin may increasingly be used for high-value transactions, she explained that "the scaling layers on top of Bitcoin" will enable broader adoption for payments, particularly in regions without stable banking systems.