The internet has proven to be a powerful force and it has taken the power into the world of finance. Internet culture has begun to influence the stock market, e-commerce, and more. It has generated a lot of attention and it’ll be interesting to see where things go from here.
The phenomenon of meme stocks developed due to social media sites engaging in certain stocks. The most notable example of this is GameStop. This video game retailer was declining, and many hedge funds were betting on this stock to continue dropping. On the site Reddit, many people were outraged by this and they banded together and ended up raising the GameStop stock price from $19 per share to $483 per share. Many other stocks have received similar treatment since this incident. While this is a very interesting trend, it is important to note that if you are a first-time investor, it might not be the best decision to bet on these meme stocks as it can be a bit of a gamble.
NFTs, or nonfungible tokens, are digital items that are unique and cannot be traded for a similar item. To understand this concept, it’s best to compare it to the art world. An NFT would be like an original piece of art. There is nothing out there of equal value. However, it is possible to sell prints of an original art piece or to make recreations, but only one person will have the original. Online, NFTs have become widely popular, and people will bet on these NFTs for the sake of having the original. Essentially, they are purchasing the unique code for the image even though the image can still be copied and used elsewhere. Some have sold for millions of dollars, like an NFT photo collage. The trend of the NFT market is unclear, but for now, it is generating a great deal of money.
Dogecoin is a cryptocurrency that started as a joke based on a meme featuring the Japanese breed of dog the Shibu Inu. Dogecoin started back in 2013, but it has become widely popular due to tweets from Elon Musk. It has also gained popularity on the site Reddit and has followed the footsteps of the Wall Street Bets Reddit page. Users have made efforts to increase the value of Dogecoin mostly for fun and so far it’s working.
The financial world is often more serious and respectable. However, the internet is doing its best to change that. Whether it’s good-natured or to seek justice, the internet and finance have certainly collided in the last year.
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