Earlier today, Tesla Motors announced that it has made a major purchase of Bitcoin and plans to introduce cryptographic payments in the future. Some in the industry now speculate that Apple will be the next institutional player to adopt the crypto asset.
In a market report by analyst Paul Steves of the Royal Bank of Canada Dominion Securities, the introduction of the technology company in cryptography could create more than $ 40 billion in annual revenue and cause waves across the industry.
He based this forecast on the payment company Square’s Bitcoin (BTC) revenue history, which reported more than $ 1.6 billion in BTC revenue in the third quarter of 2020. Square has about 30 million monthly active users , a fraction of Apple’s installed base, reported by CEO Tim Cook is expected to have 1.65 billion devices in January.
“What if [Apple] deciding to go into the crypto exchange business, we believe the company could immediately gain market share and disrupt the industry, ”said Steves, adding that the move could help make the United States a leader in cryptography for up to 20 years. “The company could unlock a billion dollar opportunity with a few clicks.”
Earlier today, Tesla Motors announced that it has allocated part of its balance sheet to Bitcoin and would introduce cryptographic payments for its cars at a later date. The introduction of a high-profile player in the technology industry – and the subsequent rise in the price of BTC to a new historical record – has meant that many in the crypto community have clamored for Apple to be next.
Wen Buying #BTC?
– Jason A. Williams (@GoingParabolic) February 8, 2021
In November, Toroso Investments portfolio manager Dan Weiskopf said that Apple investing between $ 10-20 billion in Bitcoin would be more profitable in the long run than the technology company “aggressively repurchasing shares”. He added that investing in crypto would also be a protection against inflation.
With a market capitalization of over $ 2.2 trillion, Apple is the most valuable company in the world and has about $ 200 billion in cash – hypothetically enough to buy 25% of all Bitcoin in circulation.