Digital Galaxy CEO Mike Novogratz reacted to the disturbing "The World Has Gone Mad and the System Is Broken" essay written by billionaire hedge fund manager Ray Dalio. The Wall Street vet says that it makes him want to buy more hard assets.
Ringing alarm bells
In his LinkedIn post, Dalio, the financial titan at the helm of Bridgewater Associates, claimed that the capitalist system in its current form was flawed. He is particularly at issue with low or negative interest rates. Investors who are sitting on piles of cash are willing to throw their money even at unprofitable companies. Case in point: Uber. The company's stock has tanked by more than 33 percent from its IPO price.
Meanwhile, there are people are not able to access capital at all, which according to Dalio, could cause "a big paradigm shift."
“This set of circumstances is unsustainable and certainly can no longer be pushed as it has been pushed since 2008. That is why I believe that the world is approaching a big paradigm shift.”
Gold over Bitcoin
As reported by U.Today, the global negative-yielding debt topped $17 trln, and, according to Cameron Winklevoss, it represented 17 trln reasons why somebody should own Bitcoin. Dalio's Twitter post was obviously swarmed with cryptocurrency proponents who perceived Dalio's critique as a bullish sign for the top coin.
bitcoin fixes this— Lolli 🍭 (@trylolli) November 6, 2019
While Novogratz and Dalio are both huge gold proponents, the latter is yet to embrace Bitcoin, its digital version. Despite acknowledging the great idea behind it, the Bridgewater Associates head dismissed BTC as "a highly speculative market" and "a bubble" during an interview with CNBC back in September 2017.