Bridging The Gap Between Traditional And Crypto Markets With Bividends

This was the first time ever, that a company had issued a bividend, or bitcoin dividend, to shareholders. BTCS thinks that by temporarily removing shares from its tradeable float, it would increase the usage of cryptocurrencies, develop its shareholder base, reward current owners and tighten its float.

Before we delve further into Bividends, let's first see how they are different from dividends.

What is a Dividend?

Companies and investment funds regularly distribute dividends (a portion of profits or earnings) to shareholders. Businesses that reinvest earnings back into the company are more common than those that give shareholders dividends. Dividends can be paid in the form of cash or more stock. As the board of directors determines the size and frequency of dividend payments, the shareholders are informed of this information. One-time payments, known as "special dividends," are the exception rather than the rule when it comes to distributing dividends.

For investors who just purchased a dividend-paying investment, it is important to bear in mind that they may not be qualified for the following dividend payment. The ex-dividend date of a stock determines whether or not it is eligible for the next year's dividends. There will be no dividend for anybody who acquires stock after that date.

Bividends- Dividends for Bitcoin

With BTCS deciding to pay Bividend to its shareholders, it laid down certain criteria that were required to be met by the shareholders in order to receive the bividends. There was no minimum BTCS share requirement for the Bividend. However, investors had to have a Bitcoin wallet to receive their incentives. It is worth noting that the dividend was not be available to all BTCS shareholders. To get the Bividend, the investors' shares must have been held by Equity Stock Transfer, the company's transfer agent. Investors who own their shares through a brokerage business are known as "beneficial owners," rather than shareholders of record, and therefore, were required to transfer their shares through Equity Stock Transfer.

This payment's ex-dividend date was March 16, and shareholders of record were required to opt-in to receive it by that day as well. To do so, shareholders had to complete forms available on bividend.com. Those who did not participate were to receive a cash payout instead of Bitcoin. An eligible investor was to receive $50 in Bitcoin as a dividend for every 1,000 shares of BTCS stock owned. In addition, the company also developed a digital asset platform that allowed clients to combine crypto portfolios across several exchanges, analyze cumulative performance, and receive analytical insights. The platform is expected to go live in 2022.

Bottom Line

The introduction of bitcoin dividends bridges the gap between the regular market and the cryptocurrency economy. This is primarily because investors aren’t directly exposed to the crypto markets' intense volatility. Heavy price fluctuations are often the reason why traditional investors are hesitant about venturing into crypto. With Initiatives like Bividends, traditional investors indirectly benefit from the crypto markets, which in turn could fuel further interest in this emerging sector. This also establishes the groundwork for future innovation in this field. Most importantly, this plays an important part in narrowing the technological divide.