Is bitcoin a share
Bitcoin Group: Stock is exploding, but investors should be warned
The shares of the Bitcoin Group were clearly among the winners with a price increase of more than 700% this year. As the operator of the trading platform Bitcoin.de, the company benefits from the increasing popularity of the crypto currency Bitcoin, in which more than 70 billion US $ are now invested worldwide.
Bitcoin itself has multiplied this year. Bitcoin Group SE has recently benefited from the Bitcoin hype - a reason to take a closer look at the still young German company.
Bitcoin Group share rises: how does the Bitcoin Group earn its money?
The Herford-based Bitcoin Group SE operates the trading platform Bitcoin.de together with the Munich-based Fidor Bank AG, which is the only regulated Bitcoin exchange in Germany.
This means: Investors who want to invest in the crypto currency Bitcoin can buy and sell the digital currency via Bitcoin.de. In the meantime, the Bitcoin Group, which in turn holds 100% of the shares in Bitcoin Deutschland AG, has exceeded the 450,000 customer mark.
The Bitcoin Group earns money from the transactions that customers carry out via the Bitcoin.de trading platform. This means: If the trading volume increases via the Bitcoin trading platform, the Bitcoin Group also earns more money.
Bitcoin Group in numbers
In the first half of 2017 alone, the Bitcoin Group was able to increase sales by 128% to EUR 1.7 million, and earnings before taxes increased by 240% to EUR 1.22 million.
At the same time, the Bitcoin Group itself has more than 3,200 Bitcoins on its balance sheet, which corresponds to an arithmetical value of almost € 12 million. In addition, due to the split (hard fork) of the Bitcoin blockchain, the Bitcoin Group holds the same amount of Bitcoin Cash at the beginning of August, which again corresponds to a value of around € 1.3 million.
Bitcoin Group - a look ahead to the future
The Bitcoin Group has set ambitious goals for the remainder of the year. By the end of the year, the company aims to exceed the 480,000 customer mark. At the same time, the Bitcoin Group wants to offer trading in the crypto currency Ethereum (ETH), the second largest crypto currency to date with a market capitalization of around US $ 28 billion, in the next few months. This measure is intended to increase sales by 10 to 20%.
Bitcoin Group stock is a risky bet on the future of cryptocurrencies
At the current price of a good 50 euros, the Bitcoin Group is valued at more than € 250 million on the stock exchange, which means that very high expectations are already factored into the price. Japan has recognized Bitcoin as an official means of payment and other countries could follow, but investors should be aware of the risks associated with the Bitcoin Group's business model.
On the one hand, the Bitcoin Group is dependent on the success of the cryptocurrencies Bitcoin and Ethereum, on the other hand, competition in trading in cryptocurrencies is likely to intensify massively in the next few years.
The Bitcoin Group still operates the only regulated Bitcoin marketplace in Germany, whether this will also be the case in the future remains to be seen. Many industry experts see the advance of decentralized crypto exchanges (Decred, Waves, OpenLedger DEX etc.) in 2018, because these cannot be switched off by a central body (state etc.).
In addition, decentralized crypto exchanges offer some other advantages. The user controls his coins directly on decentralized crypto exchanges, no third organization stands in between and can pass on any data to government organizations.
In addition, with the triumph of decentralized trading venues, transaction fees for customers are likely to fall further, as transactions are largely automated. Some crypto experts even assume that transaction fees in retail will tend to zero in the future - this would put the Bitcoin Group's business model at risk.
In short: Bitcoin Group stocks are therefore a very risky bet on the success of cryptocurrencies. Investors who are interested in crypto currencies should instead - if at all - invest directly in the respective crypto currency and consider the investment more as an addition to a portfolio.
Investors should also note that cryptocurrencies are extremely volatile and subject to strong price fluctuations. In addition to high price gains, strong price losses are also possible.
Blockchain Cardano: What's behind the Ethereum rival? Cardano is often referred to as the Ethereum of Japan - what are the prospects for the newcomer? > read more
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