Former White House Director of Communications Anthony Scaramucci says the GameStop rally shows why Bitcoin, as a concept, will succeed.
Bitcoin’s bright future
The GameStop rally has come to symbolize individual power exceeding the might of Wall Street. Scaramucci, who co-founded alternative investment firm SkyBridge Capital, spoke about the decentralized crowd’s power in moving the market. More so, how individuals acting in unison can disrupt the status quo.
“The activity in GameStop is more proof of concept that Bitcoin is going to work. How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance.”
Scaramucci commented that this situation came about as a result of low-cost smartphone trading, which has democratized the world of traditional finance. But more significantly, he sees people’s power as the primary driving force.
This, he believes, bodes well for the future of Bitcoin, as many already consider it “the people’s money.” Or, at the very least, the antithesis of what Wall Street stands for.
SkyBridge Capital launched its $310 million valued Bitcoin Fund LP earlier this month. Speaking on the launch, Scaramucci said he is bullish on Bitcoin’s future.
“We believe Bitcoin is in its early innings as an exciting new asset class.”
Wall Street takes a pounding
The stock price of failing video game retailer GameStop (GME) has rallied more than 700% over the last seven days.
It operates over 5000 stores across the U.S., Canada, New Zealand, and Europe. But like many retailers, it has suffered from a cut in consumer spending and forced closures due to the panic situation.
However, the chain store group is now the focus of a battle between “Robinhood traders” and Wall Street.
The subreddit r/wallstreetbets is attributed as the HQ from which small-time traders have been coordinating their actions. The latest thread on the matter, titled “The GME Thread, Part 2.1, for January 27, 2021,” is a pinned post with 6.8k comments at the time of writing.
Melvin Capital has just conceded defeat by closing its short position against GameStop after losing billions on the trade. Similarly, Carson Block of Muddy Waters said he had significantly cut his short position.
“It’s not rocket science — massively reduce your shorts or risk going out of business. This phase will pass, but in the meantime it’s best to be a spectator rather than a participant.”
So far, Wall Street losses on the short total $6.12 billion – which goes to show, betting against the people is a bad idea.
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