The founder of one of the largest hedge funds in the world – Bridgewater Associates, Ray Dalio, believes that a bubble has formed on the bitcoin market.
During a CNBC interview, Dalio said: "Bitcoin today you can't make many transactions in it. You can't spend it very easily."
"It's not an effective storehold of wealth because it has volatility to it, unlike gold," added the Bridgewater Associates founder. "Bitcoin is a highly speculative market. Bitcoin is a bubble."
At the same time, he expressed the opinion that investing in Bitcoin is in itself a good idea, but the cryptocoin’s too limited application in the world still limits the possibilities of it to become a "currency".
Some analysts agree with Dalio, especially about the high volatility of the cryptocurrency market. The experts say that Bitcoin needs a more stable price if it wants to grow in non-speculative transactions. The price of Bitcoin may currently be a bubble, but the very idea of Bitcoin is very promising.
Bridgewater Associates is an American investment company founded by Ray Dalio in 1975. The fund manages assets worth about $ 160 billion, according to information on the company's website.
Dalio's negative sentiment comes a few days after Jamie Dimon of JPMorgan Chase called Bitcoin a fraud.
As if it was not enough, yesterday, an important asset manager who deals with gold assets called the cryptocurrency market "garbage."
John Hathaway of Tocqueville Asset Management said in an interview with Kitco.com:
"It's an absolute bubble – there's no question in my mind that it's in a bubble. Sure you can make money in bubbles any time but you have to get out. Let's not forget that the total market value of these cryptocurrencies is $180 billion or so, maybe a little less now -that's tiny compared to gold."
Despite the recent bad comments from important investors, Bitcoin price maintains at 3,565.2 as of today.