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Ray Dalio, founder of the world's largest hedge fund, says 'bitcoin is a bubble'

Key Points
  • "Bitcoin today you can't make much transactions in it. You can't spend it very easily ... Bitcoin is a bubble," Ray Dalio said on CNBC's "Squawk Box" Tuesday.
  • It's not an effective storehold of wealth because it has volatility to it, unlike gold, " Bridgewater Associates founder tells CNBC.
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This hedge fund titan thinks bitcoin is a bubble

Bridgewater Associates founder Ray Dalio said Tuesday he is not a believer in cryptocurrencies.

"Bitcoin today you can't make much transactions in it. You can't spend it very easily, " Dalio said on CNBC's "Squawk Box."

"It's not an effective storehold of wealth because it has volatility to it, unlike gold," the hedge fund founder added. "Bitcoin is a highly speculative market. Bitcoin is a bubble."

The investor said there are two important facets to being considered a valid currency: ease of transactions as a medium of exchange and being a "storehold of wealth."

"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]," he said.

Dalio wrote about his life lessons and the initial failures during his career in his book entitled "Principles: Life and Work," available on Tuesday.

His firm currently manages about $160 billion, according to its website.

Dalio's negative comments come a week after JPMorgan Chase CEO Jamie Dimon also took a shot at bitcoin, saying the cryptocurrency "is a fraud."

"It's just not a real thing, eventually it will be closed," Dimon said at the Delivering Alpha conference presented by CNBC and Institutional Investor.

WATCH: Bitcoin mining can land you in jail in this country

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Bitcoin mining can land you in jail in this country