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If Bitcoin were a company, would you buy shares?

October 9, 2019

You’ve heard about buying shares as an investment method, others talking about their experiences in different companies, etc. However, you have surely wondered what you would invest in if you have the opportunity to do so tomorrow. There are plenty of options, but you still don’t know what to decide, and there is an opportunity to buy shares in a new company called Bitcoin. Would you invest in it? Find out.

First, the stock market is one in which companies can issue securities in order to find financing.

Thus, investors who buy these securities become shareholders in the company and obtain dividends calculated from the profits made by the company thanks to this financing and in proportion to the number of shares bought.

The vast majority, if not all, of large companies do this. There are many successful examples, however, here we will take Apple’s.

Buy shares in Apple
Apple, as a company, is considered one of the greatest stock market successes of the 21st century. Since the subprime crisis, Apple has been one of the most popular securities among institutional and retail investors, as well as Microsoft.

Although the apple brand moves in a technology sector where profitability is scarce, it has managed to change this in a healthy way. In addition, its ability to pay its debt is not questioned too much, despite the fact that in 2018 faced downward trends at one time, but today seems quite healthy.

In terms of fundamental analysis, Apple is a high-quality long-term company with a cash flow of over $250 billion for the past year. As a result, it has an enviable profitability in the technology sector.

Also, it is said to have enough financial flexibility to work on other growth factors to create shareholder value.

Surely, for someone investing in stocks for the first time, Apple seems like a safe choice. But what if you want to risk it? Does this work like blind betting? No.

How and why?
Investing is definitely not a game of chance. Behind the purchase of shares there is an arduous work of analysis of the factors that influence their stock price and their chances of generating profits. Therefore, if Bitcoin were a company and you wanted to buy shares there, you have to consider several things.

First, you have to know how risky it is and know your goals. In other words, what do you really want to achieve with the money you invest and what do you expect to use it for once you’ve earned a return?

There are people who feel comfortable in situations of uncertainty, as there are people who don’t, you have to know which side you’re on.

What happens is that it is the small companies, with good growth prospects, that can redeem the most. However, inexperienced investors tend to buy shares in strong companies like Apple, believing that their investment is safer.

So what you should then ask yourself is “would I be able to buy shares in Bitcoin as a company; considering the risk involved and its good growth prospects? Before you give the answer, think about what we tell you next.

To invest in Bitcoin if it were a company you should…
Understand your mission, purpose and believe it’s worth it.

You should also evaluate the volatility of those stocks by looking at how sharp the fluctuations in stock prices are.

In addition, if you consider that Bitcoin has a maximum issue of 21 million BTCs, but that not all tokens are issued, you would know that it is like being in the presence of a company that only offers limited edition products, and that if the business turns out well, the costs of these products could rise more and more every day.

This, in a hypothetical case, for a stock market sounds like something interesting. But you would also know that although the potential of this company would be gigantic, due to its possible yields; its volatility could also be great.

Thus, the investment through the purchase of shares in Bitcoin if it were a company would depend on: how risky you feel, how much you are convinced of its potential in the future, whether you consider it a long-term investment or not, and evaluate how demand fluctuates considering the fact that it has a defined maximum emission; no more, no less.