Ray Dalio, the Bridgewater Associates founder said on Tuesday that he is not a believer in or of cryptocurrencies.
“Bitcoin today you can’t make much transactions in it. You can’t spend it very easily,” Dalio said on CNBC’s “Squawk Box.”
“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.”
He explained that there are two main factors that need to be considered for a currency to be ‘valid’, the first being easeful means for a transaction to take place.
“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],” he said.
The firm, which Dalio started in 1975 in his two-bedroom apartment currently manages about $160 billion, according to its website.
Dalio’s negative comments follow after JPMorgan Chase CEO Jamie Dimon also took a shot at bitcoin, saying the cryptocurrency “is a fraud.”
“It’s just not a real thing, eventually it will be closed,” Dimon said at the Delivering Alpha conference presented by CNBC and Institutional Investor.
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