Trading apps like Robinhood have stepped in to stop their customers from trading stocks like GameStop, which have surged in recent days. As a result, bitcoin and cryptocurrency are starting to look a lot more promising, which is potentially why the world’s number one digital asset by market cap has surged by more than $2,000 at the time of writing.
GameStop Barricades Help BTC Spike Again
Bitcoin was initially trading for under $32,000, though in the last day or so, the currency has surged beyond the $34,000 mark, thereby improving its position by roughly five percent or more. Thus far, the cryptocurrency market has added approximately $100 million to its overall value in the past 24 hours alone. Other competing altcoins have also surged, with Ethereum, Polkadot and Chainlink having added approximately five to ten percent to their values in the past day.
One of the big problems that many retail players and professional traders alike see with stocks and the world of traditional investment tools is that there is not enough transparency, and that third parties – such as Robinhood did with GameStop – are able to easily step in and decide things for their customers. When it comes to crypto, however, more decisions are in the hands of those who use them.
In a recent interview, Meltem Demirors – chief strategy officer at Coin Shares in London – explained:
The lack of transparency in traditional markets has resulted in limited oversight, but also a lack of opportunity for retail investors, which has been exacerbated by the debasement of the dollar. Crypto inverts this power structure and has really been a bottoms-up, retail-led movement, with bitcoin markets developing entirely outside of Wall Street and the traditional financial system. Crypto markets are open and accessible to anyone with a smart phone, and bitcoin presents an equal opportunity to investors of all types, from online shoppers earning bitcoin back with their Fold card to retail users buying $100 on Gemini, to institutions buying $10 million contracts on the CME and everyone in between.
The Space Just Keeps Getting Bigger and Bigger
Many people are now seeing the recent price rises of bitcoin and assorted cryptocurrencies as a positive sign that the space is now getting bigger than it ever was before. It is also becoming much more attractive to new investors. Paolo Ardoino – chief technology officer at Bitfinex in Hong Kong – says:
Bitcoin is ascendant again as the GameStop issue takes center stage. As advocates for retail investors rail against the current structure and practices of financial markets, it is important to note that much of the work being done in the blockchain space has been inspired by these barriers. Removing obstacles to normal, everyday working people that are building and seeking wealth-growing opportunities has always been part of the ethos of crypto.