Apple should invest in Bitcoin, make the wallet app into the crypto exchange.
Will the tech giant follow the footsteps of Tesla and MicroStrategy and invest in Bitcoin? And many major investment banks believe that they should change their wallet app into an exchange too.
Apple is one of the most valuable companies in the world because of the success of its iPhones, Mac computers, and software products. Long-simmering rumors about its work on an electric car project have heated up again later, however, at least one bank believes that the company should turn its attention to something else, particularly Bitcoin.
RBC Capital Markets, an investment bank wherein a part of the Royal Bank of Canada, told the clients in a note today that it believes Apple is poised to take advantage of the rising interest in the cryptocurrency. RBC suggested that the tech giant shall build a crypto exchange in its existing wallet service for the iPhone and that getting into crypto will be less dangerous and costly than producing electric cars.
Furthermore, Steves suggested that Apple must purchase and hold Bitcoin or other cryptocurrencies as a reserve asset, more like electric car maker Tesla announced today. Tesla purchased $1.5 billion of Bitcoin, following the example of business intelligence firm MicroStrategy, which bought $250 million last August 2020 and continued adding more in the last six months.
Steves says that the gains realized from Apple investing just four to five days of cash flow, around $1 billion, will cover the costs of the company that develops its “crypto wallet/exchange.”
“This would send even more users to ‘Apple Exchange,’” Steves wrote, indicating that it would also boost the price of Bitcoin in the process. After this morning’s Tesla announcement, Bitcoin’s price surged to approximately $5,000 today to set a new all-time high of $44,127, according to CoinGecko.
MicroStrategy had seen a large impact from its unconventional decision to buy huge amounts of Bitcoin as a reserve asset. As explored in a different article today, MicroStrategy had spent just $1.145 billion on its Bitcoin holdings since August 2020, and now it is worth more than $3 billion. Even further, the firm’s stock price had skyrocketed to 667% percent ever since the firm announced its Bitcoin strategy.
MicroStrategy CEO Michael Saylor believed that an “avalanche of companies” will follow suit, and Tesla approved the idea a big way today. Will Apple be one of the big companies to follow suit?
Apple has not given any public indication of the crypto interest as of now, at least RBC believes that it could be mutually beneficial for both the tech giant and Bitcoin similarly.
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