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How do franked and unfranked dividends impact the value of cryptocurrencies?

avatarHuxley NyaogaDec 17, 2021 · 3 years ago3 answers

Can you explain how franked and unfranked dividends affect the value of cryptocurrencies?

How do franked and unfranked dividends impact the value of cryptocurrencies?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    Franked and unfranked dividends can have an impact on the value of cryptocurrencies. Franked dividends are dividends that have already had taxes paid on them, while unfranked dividends have not. When investors receive franked dividends, they may be entitled to a tax credit, which can increase their overall return on investment. This increased return can lead to increased demand for the cryptocurrency, driving up its value. On the other hand, unfranked dividends do not come with any tax benefits, so they may not have the same positive impact on the value of cryptocurrencies. Overall, the impact of franked and unfranked dividends on the value of cryptocurrencies will depend on various factors, including investor sentiment and market conditions.
  • avatarDec 17, 2021 · 3 years ago
    Franked and unfranked dividends can play a role in determining the value of cryptocurrencies. Franked dividends, which have already been taxed, can provide investors with additional income and potentially increase the demand for the cryptocurrency. This increased demand can drive up the value of the cryptocurrency. On the other hand, unfranked dividends do not have the same tax benefits and may not have as significant an impact on the value of cryptocurrencies. It's important to consider the overall market conditions and investor sentiment when evaluating the impact of dividends on cryptocurrency value.
  • avatarDec 17, 2021 · 3 years ago
    As an expert in the field, I can say that franked and unfranked dividends can indeed impact the value of cryptocurrencies. Franked dividends, which have already had taxes paid on them, can provide investors with additional income and potentially increase the demand for the cryptocurrency. This increased demand can drive up the value of the cryptocurrency. On the other hand, unfranked dividends do not come with any tax benefits and may not have the same positive impact on the value of cryptocurrencies. It's important for investors to consider the potential impact of dividends when evaluating the value of cryptocurrencies in their portfolio.