Bitcoin Forum

Ray Dalio, founder of the world's largest hedge fund, says 'bitcoin is a bubble'

Bridgewater Associates founder Ray Dalio said Tuesday he is not a believer in 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 storehold of wealth because it has volatility to it, unlike gold," the hedge fund founder added. "Bitcoin is a highly speculative market. Bitcoin is a bubble."

The investor said there are two important facets to being considered a valid currency: ease of transactions as a medium of exchange and being a "storehold of wealth."

"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.

Dalio wrote about his life lessons and the initial failures during his career in his book entitled "Principles: Life and Work," available on Tuesday.

His firm currently manages about $160 billion, according to its website.

Dalio's negative comments come a week 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.

https://www.cnbc.com/2017/09/19/ray-dalio-says-bitcoin-is-bubble.html

I hope he is willing to bet even 10% of his income if Bitcoin will not be closed let's say within the next 5 years. In my opinion, he has not studied Bitcoin and cryptocurrency enough to make a sound judgement. We have to remember that it is the people holding Bitcoin that are creating volatility and it is not a direct effect or something from Bitcoin itself. There will come a time when Bitcoin can have a more steady value or will have some plateau but it is not yet happening right now as Bitcoin is still young.

Bitcoin is in fact partly evolving especially with its adoption...you can't create some magical wands here and expect people and merchants to fully embrace Bitcoin. Every time there are people who expressed their gloomy prediction on Bitcoin we should remember that at that precise moment Bitcoin is doing something on them...disrupting the traditional way of looking at things and these people are somehow affected and they that they need to protect their turf.

That statement the man issued that Bitcoin will be closed is akin to some people here who are proclaiming that Bitcoin is dead especially if there can be some corrections or dip in value. The only difference is that Ray Dalio has a good name and has a good track record to speak of.