As we all know, the latest China FUD as well as JP Morgan CEO, Jamie Dimon's statement has affected the cryptocurrency market a lot. Before all this FUD, the Bitcoin was trading strongly at $4600 which was quite phenominal number for the cryptocurrency giant.
If we talk about cryptocurrencies in general, then there are many cryptocurrency projects running smoothly and developing something of extreme value. For example: Civic (CVC) is concerned with Online wallet and transactional security while TenX (PAY) is making online and offline payments easier by introducing their own payment cards. Ethereum (ETH) is already providing smart contracts basis for many projects while Monero (XMR) is leading anonymous cryptocurrency transactions.
All in all, we can say that Cryptocurrency's future will be bright if frequent negative news stop coming altogether.
Now, let's talk about the latest statement by World's Largest Hedge Fund Founder & CEO, Mr. Ray Dalio on Bitcoin & Cryptocurrency in General.
Bridgewater is the world's largest hedge fund accumulating $160 Billion in assets. It's a leading hedge fund manager in the whole World providing people the most reliable and less volatile means of investment.
Recently Mr. Ray Dalio called Bitcoin a 'Bubble' in his statement.
Mr. Dalio actually don't believe in the potential of Bitcoin and they call it absolute bubble. He said in his latest statement that 'Bitcoin is a highly speculative market and it is an absolute bubble'.
The reason being: As per Mr. Dalio's opinion, Bitcoin is not a currency because it doesn't serve the basic 2 functions of a currency, namely:
- Usability as the medium of exchange
- Usability as the store of Wealth.
As per Mr. Dalio's statement, Bitcoin is highly volatile investment which works only on speculation. There are no strong fundamentals as well as basis for cryptocurrencies wide spread. They are being running by normal people who buys low and wants to sell high without even dipping their toes in company's fundamentals.
Mr. Dalio said in his statement that Bitcoin could have been a currency but it's a shame that people are not allowing it to become one. People are just purchasing cryptocurrencies out of FOMO and eventually suffer losses.
Now, after all these statements, There's a high chance that Cryptocurrency market could take another dip like it did when Mr. Jamie Dimon released his statement over cryptocurrencies. At that time, market took a huge dip and within 24 hours, a total $23 Billion had wiped out of cryptocurrency market.
This time there's also a chance, although slight, that market could take another dip again as the Bitcoin is wavering around $3820 at the time of writing this. If it fell even further, then another dip will not be far away.
Let's hope everything will be stable as soon as possible and I request all the investors and traders to keep your investment safe. Invest only after proper research and technical analysis as the crypto market is highly volatile.
Thanks for reading ..!!
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