In a recent interview, Ray Dalio who is the founder of Bridgewater Associates says that “Bitcoin Is A Bubble”. We got further details for you, so read on…
Bitcoin Not An Effective Storage Of Wealth
With $160 billion of in assets, it makes Bridgewater Associates the world’s largest the biggest hedge fund by total assets under management.
"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."
Those are the exact words that came out of Ray Dalio in a recent interview with CNBC just a few hours ago.
Too Much Speculation Going On
The billionaire investor said that cryptocurrencies as a whole is very market-driven by people who thinks that they can sell it at a higher price.
That’s the reason why Bitcoin is pretty much a bubble. And we all know that once a bubble burst, the effects could be catastrophic.
Extraordinary Gains In A Short Period
Compared to the more traditional stock market, we have seen gains of approximately 12%-13% for the Dow Jones Industrial Average as well as the S&P 500 index. But with Bitcoin, it started off modestly at just ~$1,000 USD earlier in 2017 and shot up to ~$5,000 in early September before settling in at ~$4,000 this week. That’s a huge gain of almost 400% which is nothing short of extraordinary.
China Already Showing Disapproval, Could Others Follow Suit?
China have already taken stern actions by disapproving Bitcoin with two recent actions:
- Rejection of fund-raising through cryptocurrency
- BTCChina Exchange, the largest exchange in China; will stop all trading on September 30th
Rough Waters Ahead For Bitcoin
It seems that the true test for Bitcoin is yet to come. They survived the last few changes, let’s see if it can survive the incoming onslaught of a bubble burst according to experts.
Category: Team WhaTechCompany profile: Tech junkie by profession and passionate about anything from the digital world, movies, games and reading. He loves writing and hopes you enjoy his writing as much as he does. Eza, is also known as Don in the virtual world, but don’t him me wrong, he's not a mafia type he's really a nice chap and a devout family guy.