How Reddit turned the stock market upside down

Unless you’ve been living under a rock, you will have probably noticed the drama between a small group of Reddit users and the global elite (a.k.a. Hedge funds and billionaires) with regards to the stock market.

How Reddit turned the stock market upside down

In a few short days, a group known as Wallstreetbets beat Hedge funds in their own game, shortly before Robinhood exchange discontinued the purchase orders of $GME to “bailout” their biggest investors.

The events of the past week, and the ones we will be discussing in this article, indicate how the system is unfavorable for the small-time investor, and why it is important to buy Bitcoin as soon as possible.

Also Read: 12 Smart ways to make money with your phone this year.

Table of Contents

What exactly happened in the past week

Wallstreetbets (WSB) is a small-time community on Reddit, consisting of people who want to make money on the stock market, and those who simply hate the “suits” ever since they were bailed out during the crisis of 2008.

The insane situation that is currently happening started with a less popular stock known as Gamestop. The reason this particular stock became so popular was due to the fact that it was being shorted on the excess of 140% of its total size. This blatant market manipulation has been going on for years and goes totally overlooked by the authorities, causing “the small guy” to lose money, and the super-rich to keep getting richer.

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WSB users decided to collectively find a way to combat this issue by outsmarting them at their own game. In short, what they did was buy up massive amounts of Gamestop stock to drive up the price, causing all those who were shorting it to start losing massive amounts of money.

Gamestop grew further and faster than it had ever risen in its history, multiplying nearly 10x its original stock price, or $500 to be more specific.

Now this is where it got more complicated, as this move really exposed the complete corruption of the stock market. Shortly after the price “Exploded” in value, the Robinhood trading platform decided to halt buying of GME along with other stocks that were mentioned in the infamous subreddit. At some point they even started selling users shares without their permission to drive down the price, in order to minimize the damage done the the ever-short hedge funds.

Here is an interesting video that outlines the whole situation in an easy-to-understand way:

So what happens from here?

There is good news and bad news. The bad news is that wall street will do everything in its power to try and find ways to limit accessibility of the supposedly “free market” to those that have a different agenda than their playbook. We already saw this happen in the past few days with the unlawful decisions of multiple stock market platforms.

Now we are already seeing NASDAQ’s CEO propose tighter regulatory frameworks to limit possible market manipulation from the retail crowd, in hopes of continuing the unfair “game” that has been played by hedge funds all along

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But the cat is out of the bag now. The public knows that, collectively, it is able to overthrow outdated market manipulation tactics. And since we saw it happen once, we can be sure that we will see this trend continue. In the meantime, all platforms that choose to support corporates and hedge funds will start losing clients at massive rates. Even with the intervention of tech giants (google deleting 100.000+ negative reviews from the Robinhood platform), the average investor now has a better understanding of the game that is being played at their expense, and they are sick and tired of it.

You might also want to read: 6 BEST SITES TO PLAY FREE ONLINE GAMES TO EARN MONEY

Why this is important for Bitcoin

In response to the situation, we saw tech giants like Elon Musk and legendary investors like Anthony Scaramucci change their Twitter bios to a since word – Bitcoin.

According to Elon Musk, this move was coming for a long time already, as Bitcoin offers the only way out of a rigged system.

Shortly after Elon’s bold move, the BTC price chart went ballistic. In less than an hour, the cryptocurrency grew 20% in value and has since stabilized at the $34.000 price point. Many believe that the stock market “flop” was the best marketing technique to introduce Bitcoin to the public. All we can do now is wait and see how it play out.

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