This dream made Raskolnikov realize that if everyone felt that they were better or more intelligent than everyone else, they would destroy each other.
This dream is where these fears of losing his faith are first established as a recurring theme. The dream tells Raskolnikov, even before he has committed the offense, that what he must do to just begin to change his life is to come forth, confront that internecine Mikolka, and confess. He felt this way because after she was dead, her money was going to poverty and that would help them out a lot.
The young Raskolnikov represents his goodness and innocence. Shortly before the crime, Raskolnikov experiences what has become famous in world literature — — his dream of the suffering horse. Some dream theorists believe that studies on dreaming have not conclusively shown that dreams have any real purpose or significance.
Later Raskolnikov will attempt to justify the idea of the crime and maintain only that he executed it before the idea was completely formulated. Raskolnikov is absolutely terrified at the thought he might just be ordinary, and plain.
In this dream, he finds the old woman sitting under a cloak silently laughing.
He feels that he has sinned too greatly and cannot be forgiven.