Ray Dalio, who heads the $160 billion Bridgewater Associates, says bitcoin is a bubble. 
 
“It’s very much speculative. People are thinking, ‘Can I sell it at a higher price,’ so it’s a bubble,” he said in an interview Tuesday on CNBC.

Dalio said there are two things that are required for a currency, Bloomberg reported. The first is that it can be used to make transactions, and the second is that it’s a store hold of wealth, he explained.

“With bitcoin, you can’t make much transactions in it and you can’t spend it very easily,” he said. “It’s not an effective store hold of wealth because it has volatility unlike gold," said Dalio, whose firm currently manages about $160 billion, according to its website.

"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 [hurts it]," he said.

"Bitcoin is a highly speculative market. Bitcoin is a bubble," Dalio said.

Click here to read: Jamie Dimon says bitcoin is a fraud

(Newsmax wires services contributed to this report).

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