The cryptocurrency market is constantly developing. The launch of crypto-based services on decades-old traditional platforms is one method to promote awareness. Dividends in Bitcoin, popularly referred to as Bividends, are one such innovation that’s drawing traditional players. One of the world’s leading blockchain technology companies, BTCS, came up with the concept. The value of BTCS rose by as much as 67% after the company announced plans to pay a dividend in bitcoin to its shareholders. 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 bividends 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 dist...
