Bitcoin Vs Business

Many people these days have a confusion on whether to invest in Crypto currencies or in Stock Market. Also, i get comments from many people that Stock Market does not give income as Crypto market

Let us take an example of the famous crypto currency "Bitcoin" and the Stocks / Listed Businesses in Indian Stock Market

Before we jump into the comparison or understanding the investment, let us also understand that Crypto currencies work 24 hours a day, 7 days a week. However, Indian stock market working / trading hours are from 9.15 AM till 3.30 PM from Monday to Friday (I'm talking about Equities and Derivative Market). Incase if there are any festivals fall on weekdays, the stock market may remain closed on that particular day (Make note: Not on all festivals)

Let us also understand that Passive Income is the one which should make money or generate wealth for us while we are sleeping. For that, first we should sleep properly and peacefully. I just wonder if i can sleep if my market works 24/7

The important point to note here is, Nifty has Upper and Lower limit halting process. If the market goes beyond 10% (Up or Down), Nifty & Sensex trading would halt and resume after sometime or it can remain closed for the entire day. The more information about this is available in the below blog for your reference

https://bgnareshkumar.blogspot.com/search?q=halting

Let us take the example of Tata Steel (one of my famous stocks), The stock price was trading around Rs.382.30 in October 2020 and currently trading around Rs.1,294.05. During the course of 1 year, Tata Steel was very consistent in giving profit as we can see in this chart. Tata Steel was trading with a Face Value of 10

The Revenue of the company is Rs.1,56,294 Crores, Net Profit is Rs.7,862 Crores and Earnings per share is Rs.63.78. Promotors hold 34.41% of the share and the pledge of promotors share came down to 1.55% from 3.37%

This rise in price is about 3.40 times the investment in last 1 year. It is also to be noted that in 06th August 2020, company has given a dividend of Rs.10 per share and in 17th June 2021, company has issued a dividend of Rs. 25 per share. Around a year back for the worth of Rs. 7.70 lakhs (worth of 1 bitcoin) we could have held 2014 share of Tata Steel. The dividend alone for these share for 1 year would be Rs.70,495.00

When we are about to take the 1 year data of Bitcoin. It was trading around Rs.7.70 Lakhs in October 2020 and currently trading around Rs.35.60 Lakhs. During the course of 1 year, Bitcoin had great volatility and the consistency was a question here as we see from the chart

This rise in price is about 4.60 times the investment in last 1 year. Bitcoin do not pay any dividend or interest, investors income is purely based on the price increase of the Bitcoin

There are also other stocks in Indian stock which performed better than Bitcoin. Now, let us see Adani Enterprises. This stock was trading around 326.60 in October 2020 and went to the high of Rs.1,717.20 in this 1 year time and currently trading around 1,455.00 per share. Market capital of the stock is Rs.1,60,429 Crores

The Revenue of the company is Rs.39,537 Crores, Net Profit is Rs.746 Crores and Earnings Per share (EPS) is Rs,8.39 per share. The promotor holding percentage of the company is 74.92% and the Promotor pledge percentage came down to 4.51 from 32.42 last year. Rise in price is about 4.62 times the investment in last 1 year

There are many companies gave greater returns in past 1 year compared to Crypto currencies. It is all about we need to analyze and predict the companies growth with patience and consistent investment. I have listed few companies for your information

My intention in this blog is not to challenge the Crypto Currencies. This is for an information that stocks have the greater potential as they are not just a trading price instrument, they are Businesses. A value business may have the delayed gratification but it has a product or service to provide us. The demand will always be there in a quality business with futuristic approach. Just grab it and enjoy the beauty of life.

Have a Great Day

B G Nareshkumar