It seems the concept of Bitcoin and overall cryptocurrencies is certainly not going well with the top bosses of some of the world largest financial institutions. Earlier last week, JP Morgan boss – Jamie Dimon – sparked an atmosphere of unrest within the investor community by calling Bitcoin a ‘fraud’.
Now, Ray Dalio, founder of the World’s Largest Hedge Fund – Bridgewater Associates – says that Bitcoin is just a bubble. during his appearance at the CNBC’s Squawk Box, Dalio compared Bitcoins to gold and said that :
“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.”
Also Read: Bitcoin Splitting Again in November 2017
While expressing his views about Bitcoin, Dalio said that for it to be considered as a valid currency, it has to follow to main important facets. First is the ease of transactions and the second being it should be a “storehold of wealth”. Dale said :
“With Bitcoin today you can’t make much transactions in it. You can’t spend it very easily. 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].”
It seems that as the cryptocurrency markets are getting more and more limelight major institutions across the globe have started evaluating serious options for it to considered a legal tender and being accepted into the mainstream digital transactions.
The decentralised nature of Bitcoin and other cryptocurrencies has been one of the major reasons for increasing speculation of its use in the market.
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