Following the hype of James Dimon’s trashing of Bitcoin, two more renowned investors have come out and publicly stated they are not believers in the world’s largest virtual currency:
Ray Dalio, founder of Bridgewater Associates, claimed Bitcoin to be a “bubble” this week. Dalio made this accusation based on his belief that there exist two main qualities to be considered a valid currency: ease of transactions as a medium of exchange and being a “storehold of wealth.”
Dalio explained that Bitcoin is not easily spendable enough to be considered an adequate means of exchange, and is far too volatile to be considered a storehold of wealth – like gold or the US Dollar.
Notable Gold Investor John Hathaway also claimed that Bitcoin is “an absolute bubble” and “garbage”. However, Hathaway added that compared to gold the market cap of cryptocurrencies is very minuscule compared to gold.
Hathaway ended with: “Sure you can make money in bubbles any time but you have to get out. Let’s not forget that the total market value of these cryptocurrencies is $180 billion or so, maybe a little less now -that’s tiny compared to gold.”