Jack Ma, the fellow benefactor of internet business monster Alibaba, issued the notice about bitcoin while talking at an occasion in Hong Kong.
He said he was agreeable to blockchain innovation, however emphasized alert to individuals considering putting resources into bitcoin.
Mr Ma told journalists: "Blockchain innovation could change our reality more than individuals envision.
"Innovation itself isn't the air pocket, yet bitcoin likely is. It isn't on the whole correct to wind up rich medium-term by wagering on blockchain."
He issued the notice as bitcoin's value keeps on tumbling after a few prominent hacks against trades.
Speculators have sold off their coins to guard their cash after assaults on South Korean trades Bithumb and CoinRail.
The market was still in its bear cycle in mid-June yet the proceeded with breaks have seen enormous misfortunes over the market.
Bitcoin climbed in excess of 1,300 percent a year ago to a high close $20,000.
In any case, the unpredictable money's esteem has fallen by 50 percent to around $6,280, as indicated by CoinDesk.
In any case, Luis Carranza, originator of London Fintech Week, demanded there are a lot of motivations to be "hopeful" about bitcoin.
He revealed to Express.co.uk a week ago: "Digital currency is unusual. There are gigantic spikes and drops.
"$4500 could be the base, however there is nothing keeping $2500 from being the base.
"Moreover, as crypto turns out to be more standard the value tends to rise. Regardless of whether the value drops to $1000 there's nothing keeping another surge to $14,000."