Heavyweight investors such as billionaire hedge fund manager and philanthropist Ray Dalio and others from the financial sector have criticized what they perceive as a bubble around Bitcoin.
The currency was on track to cross the $20,000-mark last week but failed to do so and is now contracting once again.
Many experienced investors, including Dalio said that they were doubtful about Bitcoin value predictions and added that BTC is now a bubble waiting to burst.
Speaking to the Financial News, Mark Mobius said that “Bitcoin is a loser's game.” There is no reliable information to establish Bitcoin's current pricing model, he argued.
His comments follow those of Dalio who spoke on Twitter last week about the possibility of Bitcoin proving a problematic currency with no real coverage.
According to Dalio, Bitcoin is not a good store-hold of wealth, even though many investors seem keen on putting some of their assets in the blockchain-powered asset.
Dalio expressed skepticism that central banks and big institutional investors would ever adopt it.
Dalio welcomed people to correct him in case he was wrong but history may as well repeat itself, as Bitcoin once fell from $19,783 in 2017 to $3,248 in 2018.
Retail, though, seems to be chasing Bitcoin as the latest rally has emboldened entrepreneurs and whetted appetites.
PayPal's decision to support and endorse Bitcoin is one of the driving factors behind this.
Others, though, have confirmed the bubble-like nature of Bitcoin. Vitalik Kaleshnik, a research director for Europe at Research Affiliates, said that Bitcoin had all the trappings of a bubble already.
“What fuels that is the possibility of a lottery like payout, or the price doubling or quadrupling. These expectations generally fuel the bubble,” he added.
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