Ending a range of downturns Bitcoin recovers, despite Ray Dalio, Bridgewater Associates’ founder, calls it “a bubble”, and Jamie Dimon, CEO of J.P. Morgan, recently declared it a “fraud”.
As Bitcoin recovers $1,000 during the last four days, Ray Dalio, the founder of Bridgewater Associates – the biggest hedge fund managing around $160B in assets, comments on the token quite negatively.
On Tuesday during an interview with CNBC Mr. Dalio stated that bitcoin is “a bubble” and “a highly speculative market.”
The investor thinks there are two important features that currency should possess so as to be considered a valid one: ease of transactions as a medium of exchange and being a “storehold of wealth. Bitcoin, according to him, isn’t a good store of value and it’s hard to make transactions with it:
“Bitcoin today, you can’t make much transactions of int. 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].”
Daniel Mark Harrison, a crypto fan and former Editor-in-chief of Coinspeaker, states in his turn, that Bitcoin, Ethereum as well as other digital assets are not in a bubble, nor will they ever be in a bubble. He provides a detailed explanation, which, unfortunately, couldn’t be understood by those “nowhere near intellectually capable enough of understanding, let alone assessing, price differentials and economic details in markets radicalised by emerging technologies”.
Surprisingly, but Mr. Dalio’s comments were less aggressive than those of Jamie Dimon’s, CEO of J.P. Morgan. At a Barclays conference earlier this month, he doubled down on his past criticisms of bitcoin, declaring it a “fraud” and saying he would fire any trader known to be trading the cryptocurrency:
“Bitcoin will eventually blow up. It’s a fraud. It’s worse than tulip bulbs and won’t end well. I would fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous.
The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”
Coinciding with a crackdown on cryptocurrency in China, Dimon’s remarks, though unreasonable, contributed to Bitcoin’s fell from its all-time high of around $5,000 to just under $3,000.
Last week John McAfee challenged Jamie Dimon’s skeptic statement about bitcoin rightfully saying:
“You called bitcoin a fraud. I’m a bitcoin miner. We create bitcoins. It costs over $1,000 per coin to create a bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because it costs whatever the paper costs, but it costs me and other miners over $1,000 per coin. It’s called proof of work. And the fact that bitcoin is consistently growing in its use and its value has to say something. Sure it will rise and fall as all new technologies are. But at the same time, it is certainly not a fraud.”
Meanwhile, according to the CoinMarketCap, bitcoin seems to be no longer affected by evil tongues, as it recovers trading at $3944 at press time with market cap constituting $65,3B.
“Why should anyone care or even ask such guys like Ray Dalio, Jamie Dimon about what Bitcoin is?! It’s like asking horse salesman to comment on the new Tesla 3 or new Nissan Leaf,” says Mikhail Bobrov, CFO and co-founder of Coinspeaker. “They have no idea what they’re talking about.”