Ray Dalio, the founder of Bridgewater Associates – the world’s largest hedge fund with over $150 billion in global investments – is the latest high profile figure to share his opinion about the hottest topic in the financial world right now, Bitcoin.
Unlike JPMorgan CEO Jamie Dimon, who earlier this month called Bitcoin a fraud and predicted its inevitable collapse, Dalio actually sounds like he supports the innovation and promise of the cryptocurrency, and only thinks that the current state of affairs is unsustainable.
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Speaking on CNBC’s Squawk Box, he said: “Bitcoin today, you can’t make much transactions in it. You can’t spend it very easily. It’s not an effective store hold of wealth because it has volatility to it, unlike gold. Bitcoin is a highly speculative market…. Bitcoin is a bubble.”
“It’s a shame, it could be a currency. It could work conceptually, but the amount of speculation that is going on and the lack of transactions hurts it,” the hedge fund mogul concluded.
Rather than an attack on Bitcoin as Dalio’s statement was presented in some places, this actually sounds like fair criticism at the moment, due to runaway price speculation and a lack of easy and affordable payment use cases, which many informed cryptocurrency supporters also often bring up.