Cuban activists for freedom of expression create alternative network of Bitcoin remittances

Transactions in Bitcoin often have to be completed by bicycle on the Caribbean island.

Cubans are finding new ways around the sanctions imposed by the US government since 1962.

According to an October 26 report by Cuba’s AFP news agency, remittances sent from the United States to Cuba used to pass through a clandestine network of “cryptomime enthusiasts” before being converted into Cuban pesos.

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Erich García, a 33-year-old programmer and local YouTuber, told AFP that anyone who wants to send shipments to the island must buy Bitcoin and send it through a Cuban crypto network called BitRemesas.

Crypto users on the island then offer recipients the best price for their coins via WhatsApp or Telegram. On average, a network intermediary receives up to 25% commission for his participation in a risky and legally outside operation.

After a transaction is settled, the counterparties agree on a time and date to complete the deal. The parties that trade Cuban pesos through Bitcoin usually make long bike rides under the heat of the Caribbean to finalize the transactions. Although the group appears to be informal and self-organized, thousands of Cubans seem to be using its services.

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The Cointelegraph en Español previously published that most of the 10,000 Cubans who use Bitcoin on the island do so in secret.

Dividends are almost unanimous among Brazilian investors.

Thus, when there are doubts about which asset to choose, Bitcoin, cryptomoedas, multimarket funds or shares with dividends always appear in the tiebreaker criteria, after all, they only pay dividends to companies that are minimally profitable and therefore ‘far’ from being a fraud.

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But what is behind this scenario that creates an additional source of return?

For Capital Research analyst Felipe Silveira, the first reservation about dividends should be made exactly about this.

“The dividend is not a source of additional return. It is simply the distribution of the company’s results which already belong to the shareholders and, this way, should be reflected by the market value of the companies. It is money that is already yours and that you can access by selling some company papers, for example”.

Mental accouting

In a recently published report, Silveira analyzed the risks and advantages of prioritizing investments in companies that pay dividends, especially for those who choose to allocate their entire portfolio to this type of asset.

The modality has grown considerably in Brazil, much because of the so-called mental accouting, mental accounting, which is nothing more than the illusion of taking advantage or gaining something – in this case, the bonus is the dividends.

According to this theory, investors tend to evaluate differently the companies that pay dividends, precisely because they believe that they are more advantageous than the others: which, in many cases, this is not true.

“The price of shares of good dividend paying companies are traded at a premium in relation to those that do not pay, especially in periods in which the risk free rate is at a very low level, such as the current one, which would result in a lower expected return and a higher risk”, explains the analyst.