inhood的设计选择是，他们提供了零佣金交易，这使得投资变得更加容易和便宜。但是，他们的商业模式是赚取交易员的订单流量，这意味着他们向市场制造商出售了交易员的订单。这可能导致对散户投资者不利的交易执行价格。另外，他们还推出了一种叫做“赌翻了”的功能，允许人们通过借钱来进行交易。这使得投资者在市场上承担了更大的风险，可能导致更大的损失。
这种商业模式引发了一些争议，因为它可能会对散户投资者产生负面影响。而现在，随着加密货币在Robinhood上变得越来越受欢迎，这些问题可能会对加密货币投资者产生类似的影响。因此，我们需要关注这些商业模式对投资者的影响。Inhood is a very simple application, initially only available on the iPhone. It strips away all the charts, data, and analysis provided by traditional brokers, leaving only price charts and a large green “buy” button.
The designers wanted it to be like Tinder or Uber, allowing users to buy stocks with just a swipe. This is very different from the previous way brokers worked, involving multiple steps, warnings, and fine print that made trading seem difficult to approach.
The simplicity of Robinhood makes investing more accessible. When you buy stocks, there are confetti effects and a ding sound, providing an extra dopamine rush.
Many people are talking about Robinhood eliminating trading fees, but the design choices are equally important. These changes make trading look easier and more accessible, quickly attracting a whole new generation of investors.
However, some criticize Robinhood for making investing too simple. Traditionally, investing should be a rational decision, considering a company’s financial situation, potential price fluctuations, and cash flow. Robinhood puts all of this aside, changing the philosophical approach to trading and investing. This new approach has grown significantly since 2015, until the outbreak of COVID-19, ultimately feeling like it has dominated the entire market.
The potential dangers of memes in modern investing
Laura Shin: I want to ask you about the role of memes in investing in your book. In cryptocurrency, we see meme coins representing some of the best performers, yet critics often mock them as stupid or fraudulent. Based on your research on Wall Street Bets and their investments in meme stocks, what do you think is the value of memes? How do retail investors’ understanding of meme stocks or meme coins differ from what more “serious” investors might overlook?
Nathaniel Popper: This is a very complex and interesting question. In the trend of meme-driven investing, there are many hidden dangers, investment losses, and sad stories. Every stock and cryptocurrency has some degree of meme factor. Investing always involves an understanding of the company and the community it represents. Even if we don’t call it a “meme,” this aspect of psychological investing has always existed. I believe the introduction of memes into investing began in the cryptocurrency world, highlighting how language connects us online. Social media is full of valuable communities, yet traditionally, we couldn’t directly benefit from them. Memes monetize the idea of community and identity, changing this situation. Memes touch on a fundamental factor in investing: you invest in a company not just because of its balance sheet, but because of something valuable it represents. Memes condense this idea into a purer form and turn it into an asset. However, the more you rely on memes rather than basic financial substance, the more speculative and dangerous the investment becomes. An important issue is that communities promoting meme coins often raise the reputation of those who may profit the most, overlooking those who lose money. This is particularly evident in actions related to Elon Musk and Dogecoin, Bitcoin, and even his own stock. Social media amplifies the voices of those who make money, overshadowing the losses experienced by others. This imbalance poses a significant danger, as we often ignore those who ultimately lose in these speculative situations.
The relationship between Trump and the cryptocurrency community
Laura Shin: There are some similar stories in your book. I have to ask about Trump because much of what you talk about in the book is now making headlines. Trump accepted Bitcoin and cryptocurrency during his campaign, a sharp contrast to when he served as President and called Bitcoin a “fraud against the dollar.” Now, a portion of the crypto community supports Trump because he is courting crypto voters. Can you find some similarities between the shift of the Wall Street Bets group towards Trump and the current shift of the crypto community towards Trump?
Nathaniel Popper: In my view, a significant part of this new online investment world is essentially trolling. That’s why the word “troll” appears in the title of the book. I’m not using this word entirely pejoratively. It’s about those who fundamentally see themselves as trolls. It’s worth stopping to think about what trolling is: it’s a universe where everything seems like a joke. When Trump announced his candidacy, it seemed like a joke, and most people treated it that way. However, beneath that joke, he touched on many things deep inside American voters. He was willing to say things that no one else dared to say, and people wanted to hear them. This serious yet playful stance was present from the beginning in Bitcoin, Trump, and GameStop. People easily get lost in the surface comedy and overlook what truly moves people. Bitcoin, Trump, and GameStop are all like this. People always treat them as jokes and dismiss them, but they keep coming back because there’s something deeper behind them. Even if these things are successful, they are often overlooked. Bitcoin was successful in 2013 and 2014, reaching a price of $1,000, but when its price fell, people thought they could ignore its existence. The same happened with Trump after January 6, 2021, and GameStop. People thought they could ignore these phenomena after the initial frenzy, but years later, they still have significance. There’s something deeper that resonates with people, and that’s the essence of trolling. Whether Trump admits it or not, he has a lot in common with the mindset of the Wall Street Bets community. They see him as one of their own, someone who can smile while unexpectedly defeating opponents. This way of being simultaneously humorous and serious has deeply influenced our culture.
Laura Shin: Yes, your book really reflects what’s happening now.
Nathaniel Popper: Think about the person holding up the “buy Bitcoin” sign behind Janet Yellen. It was just a joke, but nothing could draw attention to Bitcoin more. In the attention economy of the internet, the bigger the joke, the more attention it gets, and the more real it becomes.
Laura Shin: That’s why we see the value of meme coins constantly rising. This is related to how the internet works, where people earn money through advertising, and advertising relies on attention.
Nathaniel Popper: In the past, people earned money through advertising, but advertising didn’t necessarily make someone lose money. However, with meme coins like Dogecoin, we see more invisible losers.
Laura Shin: Yes, of course. I’ve talked to some people who bought Dogecoin at the peak.
Nathaniel Popper: Even Elon Musk promoted it on Saturday Night Live until he admitted it was just a joke. Trolls are always willing to eventually admit they’re not serious.
Laura Shin: Yes, but he probably made a lot of money from it. Anyway, Nathaniel, this has been a great conversation. Your book is so timely as these events are back in the headlines.
Nathaniel Popper: The history of the internet is very cyclical and periodic. Bitcoin is a classic case, and we see this cycle continuing time and again.
Laura Shin: Yes, we’re entering another bull market cycle, so we’ll see how these events unfold this year. Thank you so much for joining “Unchained.”
Nathaniel Popper: Thank you for inviting me, Laura.
