What is a 'Dividend'
Investopedia Definition: A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.
Lets look at this as it relates to Bitcoin. ( Bit-Vidend )
A Bit-vidend is a fork of Bitcoin which takes a portion of a company's value, decided by the mining community, and distributes it to all of its HODLers. Dividends can be issued as BitcoinCash, Bitcoin Gold, Bitcoin XT, Bitcoin Classic, or Bitcoin Unlimited. These new coins are then easily exchangeable for the Original Bitcoin.
Its a little bit of sarcasm, but think about it for a second. Essentially this is a dividend. You were basically rewarded for hodling Bitcoin - were you not? Sure you had to have them in a wallet, not on an exchange, etc.. but on paper, you were rewarded with a dividend for hodling Bitcoin.
The Forks STEAL VALUE FROM BTC!
Well, perhaps temporarily. Although every single time Bitcoin forks, a vast majority of people dump the crappy forked coins in favor of the real thing - thus transferring that value back to Bitcoin, look at the prices around the time of the forks. New all time highs almost consistently.
Forks are not Dividends, they Spin-Offs!
We see your point - and its valid. Typically when a stock does a "spin-off" the original stock loses value. As was the case with Ebay and Paypal.. well.. Bitcoin does not seem to have this problem. Loyal HODLers seem to dump their forked coins and come right back to Bitcoin with their newly made profits - and Bitcoin races to another all time high.
But the forking forkers are enemies of BTC!
Yes, they are - we agree. They are deviating from the true vision in our opinion and we used to disagree with their attempts at forking our lord and savior Bitcoin. Its also not a great look for newcomers when they see there is 97 versions of Bitcoin, its confusing. That being said, if you're loyal to the original Bitcoin - then SODL the free forked coins and add to your Bitcoin Stack!
We have actually come to accept forks of Bitcoin. They validate the original version, as it proves there is a loyal community behind it. If you time it right, you can make a decent amount of money off these forks. Bitcoin Cash at one point traded at over $900 - if you sold the top, and put your profits back into the Original Bitcoin, then Bitcoin surged towards another ATH - then did you not in fact get "Free Money" ? This is why we consider forks just dividends of Bitcoin, the original Bitcoin in our opinion, is here to stay - fork it all you want well SODL and add to our stack!
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Thanks for reading, stay woke and remember to HODL!