Will Apple be the next company to adopt Bitcoin after Tesla?

by



[ad_1]

Earlier today, Tesla Motors announced that it has made a major purchase of Bitcoin and plans to introduce crypto payments in the future. Some in the industry are now speculating that Apple will be the next institutional player to adopt the crypto asset.

In a market report by Paul Steves, analyst at Dominion Securities of the Royal Bank of Canada, the tech company’s introduction into crypto could generate more than $ 40 billion in annual revenue and make waves in the industry .

He based this prediction on the historical Bitcoin (BTC) revenue of the payment company Square, which reported over $ 1.6 billion in BTC revenue in the third quarter of 2020. Square has around 30 million users. assets per month, a fraction of Apple’s install base, reported by CEO Tim Cook will be 1.65 billion devices in January.

“Yes [Apple] decides to get into the crypto exchange business, we believe the company could immediately gain market share and disrupt the industry, ”Steves said, adding that this move could help make the United States a leader in the industry. cryptography for 20 years. “The company could unlock a multi-billion dollar opportunity with just a few clicks.”

Earlier today, Tesla Motors announced that it had allocated part of its balance sheet to Bitcoin and that it would introduce crypto payments for its cars at a later date. The introduction of a high profile player in the tech industry – and the subsequent surge in the price of BTC to a new all-time high – has caused many in the crypto community to clamor that Apple is the next.

In November, Toroso Investments’ portfolio manager Dan Weiskopf said Apple would invest between $ 10 billion and $ 20 billion in Bitcoin would be more profitable in the long term than the tech company “aggressively buying back stocks.” He added that crypto investing would also be a hedge against inflation.

With a market capitalization of over $ 2.2 trillion, Apple is the most valuable company in the world and has around $ 200 billion in cash – hypothetically enough to buy 25% of all Bitcoin in circulation.