Share this article
World's Largest Hedge Fund Founder: Bitcoin is a 'Bubble'
Ray Dalio, the founder of the world's biggest hedge fund, thinks bitcoin is in bubble territory, according to a new interview.
By Nikhilesh De
Updated Sep 14, 2021, 1:56 p.m. Published Sep 19, 2017, 8:05 p.m.
The founder of the world's largest hedge fund believes there's a bubble in the bitcoin market.
Ray Dalio is the founder of Bridgewater Associates, which according to recent rankings is the biggest hedge fund by total assets under management. Per its website, Bridgewater manages around $160 billion in assets.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Dalio, who appeared on CNBC's Squawk Box this morning, said that he doesn't think bitcoin is "an effective storehold of wealth", comparing it unfavorably to gold.
He said in the interview:
"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."
While he noted that bitcoin "could be a currency," Dalio argued that a mix of market speculation and the lack of broader adoption is getting in the way
"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 [prevent it]," he said.
Dalio went on to add that the privacy aspects of bitcoin make it difficult to accept as a currency as well, asserting “people won’t know what you’re doing."
His comments come as cryptocurrency markets recover from regulatory developments in China, which have seen officials there increasing their scrutiny in the exchange space, trigging a raft of closures and policy changes. At press time, the price of bitcoin is trading at roughly $3,984, per CoinDesk's Bitcoin Price Index (BPI).
Image Credit: Valeriano DiDomenico/World Economic Forum
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Federal Reserve Cuts Rates 25 Basis Points, With Two Members Voting for Steady Policy
The anticipated move comes as policymakers are still operating without several key economic data releases that remain delayed or suspended due to the U.S. government shutdown.
What to know:
- As expected, the Federal Reserve trimmed its benchmark fed funds rate range by 25 basis points on Wednesday afternoon.
- Today's cut is notable given the unusually large amount of public dissension among Fed members for further monetary ease.
- Two Fed members dissented from the rate cut, preferring instead to hold rates steady, while one member voted for a 50 basis point rate cut.
Top Stories
