The founder of Bridgewater Associates; the world’s largest hedge fund, has said that the Bitcoin market is a bubble. Bridgewater Associates is an American investment company that was founded by Ray Dalio in 1975. According to the company website, Bridgewater manages 160bn USD of assets.
Yesterday (19th of September), in an interview with CNBC, Ray Dalio said that investment in Bitcoin is “not an effective storehold of wealth because it has volatility to it, unlike gold. Bitcoin is a highly speculative market. Bitcoin is a bubble." He also added that while Bitcoin is not a bad idea, its lack of widespread adoption is preventing it from becoming a proper currency as he sees it.
To a certain extent, I agree with Ray’s comments. Interest in bitcoin currently has a strongly pronounced speculative character, which creates very high volatility in the cryptocurrency’s price. In order for the number of non-speculative Bitcoin transactions to increase, the currency needs a more stable price. We can therefore say that for the time being, perhaps Bitcoin really is a bubble, but the idea of Bitcoin itself, in my opinion, is very promising.