Bitcoin, GameStop, and the Price of Taking on Wall Street
With all the talk ofGamestop on the internets, thought I’d leave this here:
The future was supposed to belong to Bitcoin, not video game store stocks.
At the end of 2020, a single share in GameStop—the mall-based video game retailer—was selling for $18.84. It closed today at $147.98, and has risen more than 50% since the close of today’s trading. GME stock now costs more than $220.
In addition to the eye-popping statistics, GameStop stock has been championed not by traditional traders but by a ragtag group of Redditors known as r/WallStreetBets. And now its efforts threaten to decimate the hedge funds that have shorted GME.
To which many people in Bitcoin say, “What took you so long?”
“The price-action we’re seeing on r/wsb regarding GameStop is largely driven by the resentment the vast majority of Americans hold towards Wall Street & the banking system as a whole,” William LeGate, the CEO of decentralized prediction market PredIQt who’s been a Bitcoin holder since 2013, told Decrypt.
“The rich get richer, and whenever anything fails, the Fed just prints more money and distributes it to Wall Street, not Main Street,” he said, referencing quantitative easing during the 2008 and 2020 finanical crises that injected money into the banking system. “Many Americans, particularly the newer generations, have lost trust in our banking and financial systems which are widely perceived to be rigged against working-class Americans.”