This week Bitcoin again hit a new record of $ 47,889, after a 1.5 billion dollar investment made by Tesla, a company that has also ensured that it will start using digital currency as a means of payment. Like Tesla, Square, PayPal, Holdings have taken actions that boosting and legitimizing Bitcoin, allowing the integration between the cryptocurrency system and mass businesses. Y Apple it has not been left out of this scenario.
According to statements by Mitch Steves, an analyst at RBC Capital Markets, shared from iMoore Apple should get into cryptoas it is an investment that could generate billions of dollars in business for the company.
How should Apple approach the cryptocurrency market?
Steves proposes that Apple offers its users options to transact with third-party currencies. In addition to the obvious benefit to Apple, this investment will make the United States a technology leader in crypto for a decade if it wants to get into business.
Steves bases his estimates on compare Apple to Twitter CEO Jack Dorsey’s payments company Square, which currently accepts cryptocurrencies.
“The wallet initiative appears to be a clear multi-billion dollar opportunity for the company”
“Apple’s install base is 1.5 billion and even if we assume that only 200 million users would transact, this is 6.66 times larger than Square… Therefore, the potential revenue opportunity would exceed $ 40 billion at year (15% incremental revenue opportunity) ”.
«If Apple goes this way, America would likely acquire the majority of crypto assets from a global perspective … Apple’s world-class and secure software, America could have confidence in user information and balance sheets if needed in the future«.
Steves further suggests that Apple could even finance its foray into cryptocurrency following Tesla and investing in a Bitcoin.
«For example, if the company bought $ 5 billion of bitcoins (20-25 days of cash flow), the price of the underlying asset would need to increase by 10% for the company to fully fund the entire project in the first place.«
Why shouldn’t Apple buy Bitcoin?
Like the richest man in the world, Elon Musk has set the tone for the growth of Bitcoin. Even before Tesla’s millionaire investment, his tweets naming the cryptocurrency were enough to boost its valuation. And now more than ever, they continue to cause the same effect, giving a clear example of the volatility of the currency.
Frodo was the underdoge,— Elon Musk (@elonmusk) February 11, 2021
All thought he would fail,
Himself most of all. pic.twitter.com/zGxJFDzzrM
A tweet shared this Wednesday Musk has published the message Frodo was the underrated one. Everyone thought he was going to fail. Himself, above all » followed by a picture of Bitcoin. The publication caused this to increase its value by 15.7% in less 15 minutes.
Although no one wants to be left out of the beneficiaries of the investment in Bitcoin, its behavior is far from Apple’s more conservative policies. And while it is certain, that the most valuable company in the world also wants his bite, you are likely to expect more stability in the market, before a major investment in Bitcoins.
Source: iPadizate by www.ipadizate.es.
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