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Bitcoin blues, and Robinhood's response
Good morning everyone. We hope you’re having a relaxing Sunday morning!
Due to an emergency order issued late Friday afternoon by the CDC, Americans over the age of two will now be required to wear a mask on all forms of public transportation, as well as inside the respective transportation hubs starting tomorrow. The CDC director claims that requiring masks will “...prevent the need for lockdowns and reduce associated losses of up to $1Tn...”
Representatives from India indicated yesterday that a bill would soon be introduced that would ban all cryptocurrencies from the country while simultaneously introducing a national “official” digital currency. In addition, the bill will propose 10 years in jail for anyone who violates the law. The problem? Bitcoin and other cryptocurrencies are decentralized, meaning that there’s no way to track or block the transactions from occurring in one country.
Last week during the “Big Short Squeeze” involving $GME, Robinhood banned users from purchasing any more shares of high volatility stocks. The initial theory was that it was to prevent banks from losing money from their short positions, but Robinhood released a statement indicating that it was stopped by its clearinghouse, which is the organization which settles their trades. Because trades are actually settled two days after the fact, brokers such as Robinhood must maintain a deposit with the clearinghouse to ensure payment. This week, Robinhood’s clearinghouse raised the requirement by tenfold due to the volatility of the stocks being traded, and even after a $1Bn fundraising round from their backers, Robinhood no longer had the cash requirement to carry out the trades.
Amazon excels at most things, but it’s never been able to break into the gaming industry despite it spending more than $500M a year. The reason for the exorbitant amount of spending? Bezos himself, who views gaming as one of the best potential ways to bring people into the Amazon Prime ecosystem. Unfortunately, management issues and awful game ideas have led the division to struggle immensely, wasting billions of dollars. We wish we could get paid for that level of success.
Have a great rest of your day, and we’ll see you tomorrow bright and early!
-The 90 Second News Team
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