Apple Inc (AAPL) Shares Worth Less than a Bitcoin
A single share of Apple Inc. (NASDAQ:AAPL) is now worth less than a Bitcoin, says Michael Santoli of Yahoo Finance.
However, Santoli advised not to jump ship from Apple Inc. (NASDAQ:AAPL) to Bitcoin just yet or never jump at all.
Santoli explained that for the same amount of dollars used to buy a piece of Bitcoin, one can already own a share of Apple Inc. (NASDAQ:AAPL) that already comprises 1/900 millionth ownership of Apple.
"This entitles the holder to $12.20 a share in cash dividends a year (which will likely grow) and a small voting say in who governs the company. While its price can - and sometimes does - stray far from any sober calculation of underlying value, it represents a claim on Apple's future cash flows in perpetuity; this year's per-share profit is on track to exceed $40," Santoli explained.
In comparison, when one owns a Bitcoin, he or she owns a mere filament of computer code that may or may not be worth anything in the future. In other words, the value of Bitcoin is purely speculative in nature.
"Bitcoins are "mined," or created, by programmers who set their computers to compete to solve math problems. The pace of creation of new bitcoins, now about 12 million, is set in advance. The supply of bitcoins will ultimately peak, forever, at 21 million," as explained by Santoli.
Bitcoins were just virtual currency; are without fundamental value as its encryption and processing systems remained experimental. Hence, government might be after the legality of bitcoin. It may restrict or forbid its use in the future.
Bitcoin, also, has a "dark past". It was associated with illicit trade in drugs, weapons and money laundering that the surge and hype on its value at present might just be aggregated by those who owe money in Bitcoin investment during its "dark past."
In another report from Business Insider Australia, Rob Wile saw a "crazy" movement on shares of bitcoins.
On Monday, Bitcoin was at $US500. But briefly it reached $US900 and immediately crashed at $US583.
As of Tuesday, Bitcoin shares is at $US650.
Apple Inc. (NASDAQ:AAPL) real time stock quote (published by NASDAQ OMX) is at $US518.64, down at 1.2 per cent; previous close at $524.991; day's high at $527.43, day's low at 518.12; 52 week high at $594.59, 52 week low at 4385.10.