Earlier today, Tesla Motors announced that it has made a major Bitcoin purchase 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 Dominion Securities analyst at Royal Bank of Canada Paul Steves, the launch of the technology company in crypto could generate more than $ 40 billion in annual revenue and make waves across the industry.
He made this prediction based on the history of Bitcoin (BTC) revenue at the payment company Square, which reported more than $ 1.6 billion in revenue from BTC in Q3 2020. Square has about 30 million monthly active users, a fraction of Apple’s installation base, reported by Tim Cook will be 1.65 billion devices as of January.
‘As [Apple] decided to enter into the crypto exchange business, we think the business can immediately gain market share and disrupt the industry, ”Steves said, adding that the move could help make the US a crypto leader for up to 20 years. . “The business could unlock several billion-dollar opportunities.”
Tesla Motors announced earlier today that it has allocated part of its balance to Bitcoin and will later introduce a crypto payment for its cars. The launch of a high-tech player in the technology industry – and the subsequent rise in the BTC price to a new all-time record – has prompted many in the crypto community that Apple wants to be next.
Win a sale #BTC?
– Jason A. Williams (@GoingParabolic) 8 February 2021
In November, Toroso Investments’ portfolio manager, Dan Weiskopf, said that in the long run, Apple would be more profitable to invest between $ 10 billion and $ 20 billion in Bitcoin than the technology company to aggressively buy back shares. He added that the crypto investment would also be a hedge against inflation.
With a market capitalization of more than $ 2.2 billion, Apple is the world’s most valuable company and has about $ 200 billion in cash on hand – hypothetically enough to buy 25% of all Bitcoin in circulation.