Topic: Overstock, Dell & Dish: Pay Dividends in Bitcoin - page 2. (Read 2500 times)
This can result in problems for both the dividend issuer (Dell, Overstock.etc) and the recipient (equity owners). For example, in most of the world nations, Bitcoin is considered as an asset, and not a form of currency. In that case, instead of the Dividend Distribution Tax, another tax (many be the gift tax) will be applicable and the resulting tax burden will be higher.
First accounting rules do not prevent companies from holding onto bitcoin. They make the company appear to be taking on more risk (which they would be) if they hold bitcoin.
Secondly they do not make anywhere near enough revenue in bitcoin to potentially be able to pay dividends in this mannor. They have billions of shares and only make a few hundred thousand to maybe a few million in bitcoin sales. This means that each share would get well under a dollar worth of bitcoin, which would work out to likely unspendable amounts plus the TX fees to get the bitcoin to the shareholders would eat up a lot of the money being distributed
Secondly they do not make anywhere near enough revenue in bitcoin to potentially be able to pay dividends in this mannor. They have billions of shares and only make a few hundred thousand to maybe a few million in bitcoin sales. This means that each share would get well under a dollar worth of bitcoin, which would work out to likely unspendable amounts plus the TX fees to get the bitcoin to the shareholders would eat up a lot of the money being distributed
There are many great companies now accepting Bitcoin as payment.
However, for many of them this simply means taking payment as Bitcoin and then selling those coins as soon as possible. At times, this can have a downward impact on Bitcoin prices.
They sell their Bitcoins immediately to avoid price volatility (which they now contribute to) and because accounting rules stop them from holding Bitcoin for any lengthy period of time.
Please support a campaign to request that stock market listed businesses offer to pay shareholders in Bitcoins or Fiat.
Corporations report figures on a quarter by quarter basis. There is nothing to stop corporations holding Bitcoin for 2-3 months at a time and paying dividends in Bitcoins at more regular intervals. Any fiat they would retain could be used for cashflow within the business.
It is likely that paying dividends in Bitcoin would work out cheaper for them as they would avoid the relatively high costs of processing small dividend payments.
Suggestions, flaws, support, legal issues, accounting and tax issues, etc from preventing this from happening are welcome.
However, for many of them this simply means taking payment as Bitcoin and then selling those coins as soon as possible. At times, this can have a downward impact on Bitcoin prices.
They sell their Bitcoins immediately to avoid price volatility (which they now contribute to) and because accounting rules stop them from holding Bitcoin for any lengthy period of time.
Please support a campaign to request that stock market listed businesses offer to pay shareholders in Bitcoins or Fiat.
Corporations report figures on a quarter by quarter basis. There is nothing to stop corporations holding Bitcoin for 2-3 months at a time and paying dividends in Bitcoins at more regular intervals. Any fiat they would retain could be used for cashflow within the business.
It is likely that paying dividends in Bitcoin would work out cheaper for them as they would avoid the relatively high costs of processing small dividend payments.
Suggestions, flaws, support, legal issues, accounting and tax issues, etc from preventing this from happening are welcome.
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