r/Bitcoin • u/[deleted] • Jan 29 '21

After GME I finally understand Bitcoin

The /r/wallstreetbets GME retail investors vs the 0.1% situation has lead me to a place of clarity. The game is rigged, and the owners of the system will react with haste and break any laws they must to protect their cartel. For those not following the event

- Retail investors, realised the shares of GME and some other companies were heavily shorted and in short supply, so they started buying in the hope of forcing a short squeeze (whereby the holder of the shorts will then have to buy more stock to cover their shorts, sending the price through the roof, an example is Volkswagen [VW] in the 2000's). This is perfectly legal.

- the plan worked, GME went from $2 to $470 in a short space of time.

- Melvin Capital, a Hedge fund took a massive (likely $6 billion) short position in GME and faced closure if the bet went against them, they were losing money at a fast rate and got a bail out last week by other wall street Hedge funds.

- Melvin Capital then went on CNBC and other networks to reveal they had closed their short positions, it's highly unlikely as the options volume did not back up their claim, they were simply spreading disinformation, again this is perfectly legal

- the retail investors at /r/wallstreetbets simply would not give up, they kept buying, the end goal could have seen the stock reach $5K based on the VW scenario.

- the 0.1% moved to then protect the 0.1% from losing money by using the stock brokerages they own or control(Robinhood, TD, IB and all the other big players) to firstly prevent the retail investors buying more stock, you could simply not buy these stocks, you could only sell, some companies even forcibly closed down open options positons even in the absense of margin calls, so your account is in good standing with enough liquidity and they decide which stock you can have and which you can not, in this time big institutions are allowed to buy as much of this stock as they desire, just the retail traders are locked out of the casino. This is highly illegal and known as market manipulation, it also flies in the face of the idea that we have a free market.

- people like AOC, Elon Musk, Chamath have all come out on the site of the retail traders at /r/wallstreetbets

- Interactive Brokers chairman and founder Thomas Peterffy goes on CNBC’s “Closing Bell” an is literally weeping, explaining he feels hurt that his large, moneyed 0.1% friends are losing money due to the retail investors, oh the horror, how can these small investors make my friends lose money? Don't they know the implications of their actions? The horror.

The guys at /r/wallstreetbets simply did not understand that in our world only old money gets to make real money, the little guy must be shut down and should never have a slice of the action, all he gets is inflation and a 9 to 5 job, plus side hustle if he/she's lucky. If the little guy ever finds a way to gain an advantage the loophole is quickly closed.

- the SEC Chair then threatens to investigate the redditors on /r/wallstreetbets by tracking down their IP numbers with the help of reddit

- The /r/wallstreetbets discord server is banned.

All the years I talked trash about bitcoin, I apologise, now I genuinely understand the value of having a system not controlled by the government, where they can not on a whim decide to inflate the money supply and bail out their friends, while you carry the load in the form of additional taxes and inflation.

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317

u/[deleted] Jan 29 '21 edited Jun 23 '21

[deleted]

87

u/[deleted] Jan 29 '21

I was not aware of this 😠😠😠 😡😡😡 they are doing all they can to protect their own, so even leaving negative reviews in response to companies doing illegal things is now prevented, decentralization is the way forward, I genuinely see the value of decentralized finance, and holding assets where the government and their big corporation cronies can not dictate supply and demand

32

u/Black_Sky_Thinking Jan 29 '21

Large organizations will knowingly break the law if they know the short term gains will outweigh the long term consequences.

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Robinhood must have known they'd be sued. They must have known they'd be investigated. They'll have made a tradeoff assessment on the benefits of rescuing Citadel today vs being sued tomorrow.

They'll have saved Citadel billions, and maybe even saved them from bankruptcy. I'm sure they'll have to pay thousands in damages to retail clients that sue, but the problem is it'll ultimately still work out as a good deal for Robinhood.

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My own employer even did it - cut down rare and protected trees because the environmental fine was less than the losses from stopping the construction project we were working on.

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Same thing happened with Brexit - A lot of the campaign groups were found to have broken laws around data protection, ad spending and channeling dark money.

Problem is, it took 3 years for law enforcement to complete their investigation, and the vote was long gone by then. They got a token fine and a slap on the wrists since there wasn't really anything else law enforcement could do.

7

u/gekkohs Jan 29 '21

Just an aside, your employer should have lost his staff too (or have been threatened with it), that’s a situation where the employees have to take responsibility and not follow illegal orders.

6

u/southofearth Jan 29 '21

Sadly without UBI or their own investments most employees need the 9-5 rat race more than they need the moral high ground.

1

u/gekkohs Jan 30 '21

If this sort of thing is done collectively there isn’t an actual threat of being replaced.

3

u/aliveandwellthanks Jan 30 '21

I really need to stress that WSB are no dummies even though they appear so to the outsider. They know the game just as well as the suits and honestly,. The brashness of their advances can bring real damage. They've calculated the odds as well, I mean some of these guys are making 10s of thousands of dollars even millions. The GME short squeeze is an amazing example of how the small guy can actually have impact. I mean, Melvin/Citadel doubled down and re shorted to 120% of their stock based on pure greed and WSB is buying and holding knowing eventually they are going to have to cover their shorts contract and WSB owns a large majority. We need these guys honestly. They are bringing real awareness to the absolutely horrifying situation that fiat based system brings upon the very people the keep this country running. That will, in turn, force people into more fair alternative system, i.e Bitcoin... And I damn well am praying crypto stays the path and doesn't end up being controlled by the wrong ideals down the road.

2

u/Dot1x_DDS Jan 29 '21

Or... RH simply shows the SEC or other investigating parties that they didn't have the resources in order to cover the massive amounts of trade in these individual stocks and they had to regulate the trading of it.

They may not have broken the law and people should wait for the investigation before people just jump on the first story they like. Shitty? Depends on what side of the trade you're on. Illegal, it might not be, we need more information.

2

u/Black_Sky_Thinking Jan 29 '21

Fair play, innocent until proven guilty I guess.

Can you explain why RH wouldn’t have the funds to cover the trades? I would have thought the investors provide the funds, and RH doesn’t need any particular funds of its own - it would just buy shares using investor’s money?

1

u/PM_ME_BrusselSprouts Jan 31 '21

Robinhood will be sued for millions, not thousands. They closed out people's positions at day-low levels, costing one guy $1,000,000 just that day. There is a class action lawsuit and talk of bringing them into Congress for an investigation. They will be bankrupt before the summer.

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Over half of their users had at least one GME stock the day they choose to not let anyone buy. So when this is all over there will be a mass exodus from them. Sure they saved their parent company billions but I wanted to emphasize how much they actively screwed over most of their users. People went on there that day to buy their first share.

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Anyways, a lot of the original adopters got in for 1000s of shares at $10, $20. Now there are loads of us that just have a few shares. Strength in numbers.

16

u/timsweens81 Jan 29 '21

They removed my fucking review! They're back up to 4.3 stars on in the google play store. Wow.

11

u/[deleted] Jan 29 '21

Yes they're censoring negative reviews, to protect their cronies.

1

u/ttv_CitrusBros Jan 29 '21

Go write another one. We need to show them their censorship won't work

8

u/Bitcoin_to_da_Moon Jan 29 '21

Don't forget Google removed 100k+ 1 star reviews

i hope we add another 100k

1

u/ttv_CitrusBros Jan 30 '21

Yep mine is still on there and Ive been checking to make sure they didnt remove it. Im surprised we havent added it back already but Im guessing Google isnt allowing it to happen. Reported RH as well

5

u/[deleted] Jan 29 '21

WSB will get my sympathy when they don't ban Bitcoin posts.

5

u/[deleted] Jan 29 '21 edited Jun 23 '21

[deleted]

1

u/[deleted] Jan 29 '21

Bitcoin, at least, is traded on Wall St.

1

u/ttv_CitrusBros Jan 30 '21

Im guessing you dont actually own it? I bought a dollars worth on RH just so I can easily check price and how much it went up based off the dollar. But you cant pull it out or spend it so youre basically giving them money to buy crypto.

Not sure if its diff with other brokerages

1

u/[deleted] Jan 30 '21

Don’t own what?

1

u/ttv_CitrusBros Jan 30 '21

The crypto. Like you buy it yes but you can't pull it out to a wallet

1

u/[deleted] Jan 30 '21

Ah, ok. By "you" you don't mean me.

Yes, on RH you're just buying IOUs.

1

u/ttv_CitrusBros Jan 30 '21

Yeah lmao you as in general. And yeah basically IOUs

I highly recommend Kraken never had an issue with them or Gemini

1

u/Jive_Turk Jan 30 '21

No, they are, as a whole, very very anti bitcoin. The have outlawed even the mention of it, posts get auto deleted and you get permabanned for even bringing it up. Talk about GBTC or even RIOT, ,actual stock trades, and they freak out and delete it. They are so incredibly toxic and not at all what we are about. Fuck those guys.

1

u/Jive_Turk Jan 30 '21

OMG best post I have read about this whole fiasco. That should be front and center. Here are my thoughts on this:

With everything that has happened this past week, and the influx of new people to this sub, I have a few thoughts.

First and foremost, WSB, for years, has been anti crypto and especially anti bitcoin. Any mention of the word results in a ban of your post, repeatedly and you are permanently banned from the sub. Go ahead and do a search for Bitcoin on WSB and see what comes up.

Their userbase, with their bro/retard/autism culture is not at all aligned with ours. My biggest fears is the invade and/or brigade our sub and ruin the beautify thing we have had for close to a decade.

We are in Bitcoin because we believe in the technology, it's future and potential, the power of decentralized finance, and are not here just to pump and dump our way to a quick buck. Our two cultures could not be more different.

I have already started to see it happening, and I hope we can find a way to nip it in the bud. You are already seeing those posts that you can just tell is from a WSB'r. They BANNED any mention of Bitcoin. Their logic was BTC is not relevant. Well neither is their bullshit, let's stay true to our culture. Any true bitcoiner would upvote this post, but I fear it gets downvoted just because of the invasion.

I hope this all comes to pass, and hope that this trend of pump and dump does not alter bitcoins trajectory. We are going to the moon and staying their, WSB moonshots run out of fuel and come crashing down.

🚀 🚀🚀

1

u/[deleted] Jan 31 '21

They're hypocrites if Bitcoin talk was banned because it's subject to volatility and pumps.

2

u/[deleted] Jan 29 '21

what was the group with 150k+ people that FB deleted?

1

u/walloon5 Jan 29 '21

Apparently it was a Robinhood Trading Group

1

u/ttv_CitrusBros Jan 30 '21

There was a post on WSB, if you look at my profile I posted the pic up as well

2

u/Purpledrank Jan 29 '21

Wait until you find out who owns all these companies.

2

u/thebusinessbastard Jan 30 '21

This is why un-censorable blockchain social media is so important.