Bitcoin is a Bubble, chief of the world’s largest hedge fund says

The founder of the world's largest hedge fund he believes that 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.

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

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 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."

Dalio went on to add that the privacy aspects of bitcoin 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). 

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.