GameStop and Wallstreetbets loss could be Bitcoin's gain
In case you have been living under a rock, the hottest story of the last week or so has been GameStop.
The well known retail game store where many kids (mine included) love to buy their new and used video games.
Well, it had a short interest of roughly 140% for over a year when a well known stock trading group called Wallstreetbets decided enough was enough.
The group, with more than a million members, decided they were going to start buying up call options and shares and squeeze those short sellers.
The plan worked like a charm as the stock rose from $5 back in August to almost $500 today.
However, that is actually the secondary story to what is really going on.
After several of the hedge funds that were short started facing existential threats, the regulators and gatekeepers stepped in.
The SEC issued a comment yesterday saying they were monitoring the situation, and then TDAmeritrade as well as several others, including Robinhood, have since restricted trading in GameStop.
While it's not clear exactly what those restrictions are, some are speculating that they are preventing people from buying the stock, however, much more likely is that they upped margin requirements which impact margin buying as well as options positions.
I can't say for sure which it is as I don't have an account with either platform.
Then, Discord decided to ban the wallstreetbets discord channel and their Reddit group has since gone private, and now the Nasdaq is talking about potentially suspending trading in stocks that this group is planning to squeeze.
When you add it all up the end result is a retail investing class that feels they are being censored, canceled, and discriminated against by a rigged system.
This all benefits Bitcoin...
One thing that is very interesting to note about the above situation is the conflict of interest that there is out there...
Melvin Capital is one of the hedge funds short GameStop, Citadel is a major investor of Melvin Capital, and Robinhood sells its order flow to Citadel in order to be able to offer commission free trading to its customers.
Then, as I mentioned above, Robinhood comes out and prevents its customers from buying GameStop stock, which again a major partner of theirs is indirectly short that stock...
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Sounds like a conflict of interest much? It's no wonder that people are about to fully lose trust in a system they already were skeptical of.
Bitcoin is the ultimate large scale censorship resistance financial instrument/platform out there.
Everything that is happening right now in the stock market is pushing people away from the current legacy financial system and into something else.
What is that something else?
My guess is that it will be bitcoin and crypto.
Defi is set to be a huge benefactor to what is going on right now.
Even if the benefits aren't seen immediately I suspect over time this money is going to continue to move to the decentralized world of crypto for their social and financial needs.
With every story like the one above about Wall Street seeming to operate by unfair rules, it's like a big advertisement for bitcoin and crypto.
I look forward to the day wallstreetbets transitions to cryptobets and starts mooning some altcoins. :)
Stay informed my friends.
-Doc
Posted Using LeoFinance Beta
What this should ultimately benefit is DeFi.
If those one million people were on LeoFinance, imagine what a powerhouse this ecosystem would be!
Posted Using LeoFinance Beta
Seems like a great fit to me as well.... how do we make that happen @khaleelkazi @leofinance?
It went to 1000$
There's DOGECOIN hype going on right now too thx to /wallstreetbets :P
How do we get them to pass that on to HIVE? :)
starting a reddit thread would be a start :P
We need promotion.
I don't see anything happening with Hive in the forseeable future.
Well, lets get one going... It's time to start marketing HIVE as much as we can. There may never be a better opportunity for it than right now.
Yeah... there's a HIVECOIN subreddit with 52 members :P
Should we make a new one?
Yes. Is that the only one? I don't go on there much.
there's another one with a few hundred... acidyo is one of the mods. So there's a reddit group already. Not getting much attention though.
ok
I agree with you that this will drive investors to DeFi and People on Centralized Social Media to Decentralized platforms like Hive and Leofinance!
Posted Using LeoFinance Beta
This is the perfect environment for HIVE and Bitcoin.
Good thoughts, very likely scenario indeed. We seem to be seeing some of the smarter ones who cashed out from the stonks pump appear to be already converting some into alts with Dogecoin being heavily pumped in the past hours. The more jump the altcoin bonanza, the more likely they will convert some or most of it into Bitcoin at some point
Posted Using LeoFinance Beta
Yep, I agree. Plus it furthers the idea of centralized authority having all the cards. An idea which makes bitcoin more attractive.
As I write this (Friday 29th 2021 11:14 UTC), it already did. :)
Posted Using LeoFinance Beta
I like when things end up working out that way... :)