- Apple, the world’s largest publicly traded company, was claimed to be in an exceptionally good position to raise cryptocurrencies to a point of no return in the US. RBC Capital Markets, the world’s largest global investment bank, has published a new report on the subject.
Apple, the world’s largest publicly traded company, was claimed to be in an exceptionally good position to raise cryptocurrencies to a point of no return in the US. RBC Capital Markets, the world’s largest global investment bank, has published a new report on the subject.
Apple can add a lot to cryptocurrencies
Apple’s premium encrypted software can solve the problem of acquiring crypto assets due to changing regulatory requirements such as licensing and KYC by providing instant trading services in a closed and secure environment.
It can also choose to develop an open system using a banking service and a Bitcoin wallet or Bitcoin scaling network (lightning) to reduce the transaction cost of converting cash into Bitcoin.
Can make good use of its customer base and bring the USA to the top
Apple, already providing a payment wallet for its loyal customer base, could earn more than $ 40 billion by entering the crypto business, making the US the world leader in cryptocurrency technology.
“For example, if the firm buys $ 5 billion of Bitcoin (20-25 days’ cash flow), the price of the underlying asset will need to increase by 10% for the firm to fully find the entire project in the first place. “
RBC analyst Mitch Steve said Square, a traders service and mobile payments platform, generates about $ 1.6 billion in revenue each quarter in BTC from a customer base of about 30 million.
Apple’s market value may skyrocket
Square announced a $ 50 million investment in BTC in October 2020 and allowed users to purchase Bitcoins using the popular mobile payment system CashApp.
“Apple’s upload base is 1.5 billion and even if we assume only 200 million users will make transactions, it is 6.66 times bigger than Square. Therefore, the potential revenue opportunity will exceed $ 40 billion a year. ”
The report suggests that Apple could easily finance the entire operation of developing an Apple crypto wallet and exchange service, which would cost around $ 500 million by adding Bitcoin to its balance sheet.
“This is a solid value proposition in our opinion. Because the enterprise will be financed without liquidating other projects in the company. “