Ray Dalio, the founder of the world's largest hedge fund Bridgewater Associates, said in an interview with CNBC he believes there's a bubble in the Bitcoin (TIKER: BTC.EXANTE) market.
Dalio appeared on CNBC's "Squawk Box" and compared Bitcoin to gold unfavorably, saying that he doesn’t think the cryptocurrency is "an effective storehold of wealth.”
"It's not an effective storehold 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],” he said.
According to its own reporting, Bridgewater manages around $160 billion in assets.
Earlier this month the chief executive of JPMorgan Chase & Co (TIKER: JPM.NYSE) Jamie Dimon said that Bitcoin was 'a fraud' and it would blow up. Speaking at a bank investor conference in New York, Dimon added: “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”