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.
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.