Although it seems to many that it comes out of nowhere, the themes behind r / Wallstreetbet’s Reddit petrol pump seem familiar. As I watched this unfold, I tried to figure out why I was so interested in it, and for me it was an extension of the traditional markets for some of the most common problems associated with cryptocurrencies.

Despite some competition in storytelling, I see catalytic power – and by that I mean the proliferation of a social media message that has generated enough interest to have an impact on the market – for GME Pump, which is similar to it in some the moment it was the motivation of Bitcoin (BTC). This is the driving force (depending on cynicism) for the broader cryptocurrency markets and the movement for decentralized financing – the desire to “democratize finance”. Behind this movement is the view that economics and financial products should be open and accessible to all, and not depend on whether you are a certified (read: wealthy) or institutional player.

RELATED: Time to Shine? Crypto will get a chance after the GameStop drama

The long-criticized accredited investor base was recently expanded in 2020. In addition to the revolution, the change allowed to meet several classes of investors with certain economic powers, such as class 7 and knowledgeable private equity fund employees. identify among other changes that do not correspond to anything significant. See the Securities and Exchange Commission press release for a description of the latest changes in the definition.

There was a folkloric element in the story, the story of David and Goliath, where the common man was able to stage a coup, and inspired a large crowdfunding movement in the market. While it evoked a certain euphoria, however, the episode also highlighted some of the tensions inherent in American society, including a strong sense of parenting towards the poor, in this case retail investors, and the tension of younger generations.

RELATED: GameStop Saga shows that old economy is false, and DeFi is the answer

Organizational education
In the United States, as a somewhat toxic branch of self-determination, there is a prejudice or underlying assumption that the rich become so because of their personal characteristics, and in the same way, the poor will remain poor as a result of some. Personal failure on their part. Outside academia, retail policy did not reflect much of the study of the social and economic factors that enable people to accumulate wealth and feel that they have been forged by increasing barriers to the rise of the United States.

This is manifested in normative parents, where the government places restrictions on who they believe can afford investments or have access to certain financial products. It was clear that unapproved individuals were left without access to early investment. Many have argued that the welfare test systematically bans all investors who can understand risk, regardless of income level, and have argued that I agree that “wealth does not replace economic development.”

But at the same time, it provides access to casinos, lottery tickets, payday loans and other predatory financial instruments such as reverse mortgages, where competing interests are assumed, such as government deficits or effective industrial pressure. …

You end up with a system that is apparently designed to reinforce class barriers – where the rich can make laws and dictate the story. This is clear from Melvin Capital’s sympathetic content broadcast on CNBC, which portrays hedge funds as heroes using a network-based belief system that has somehow worked just as well for society and is fair all over the world.

This was combined with Redditor’s characterization as a grouped and unruly audience that through chaos and destruction came on its way to personal financial ruin like a rodent and created a situation where there was a certain systemic risk created by promoting a randomly low level. Volume inventory. Not to end this question, but while the rich here, among other things, have lost some money, this is not quite the economic end of the world as it was portrayed.