RBC Capital Markets said in a statement on February 9 that Apple should follow in the footsteps of Tesla and venture into digital assets instead of expanding its business to car production. According to analyst Mitch Steves, the tech giant can make more revenue if it develops its digital wallet and makes it into an exchange.
‘If the firm decides to enter into the crypto exchange business, we think the firm could immediately gain market share and disrupt the industry,’ stated the RBC.
‘The wallet initiative appears to be a clear multi-billion dollar opportunity for the firm,’ stated Steves. He said that Apple’s revenue could surge up to 25% if the company decides to create an exchange and offer Bitcoin in its portfolio.
With Apple’s high-quality software and fool-proof security, it can be a big contender in the market, especially if it adopted cryptocurrencies in its features. Additionally, the RBC added that the company can help streamline issues regarding KYC regulations for customers who are not well-versed in digital assets. It can also make the United States the leader in crypto should Apple merge the use of virtual currencies in their services.
‘If the USA owns the most crypto assets (be it Bitcoin or other assets), it would not make logical sense in our view to ban it,’ stated RBC in the statement.
Moreover, they also said that if things transpire well between Apple and crypto, the regulations on digital assets in the US could be more lax, allowing more entrepreneurs to venture into crypto-related businesses.
Currently, digital assets are becoming more and more accepted due to the influence of big companies and personalities investing in cryptocurrencies. Just recently, Tesla purchased a huge amount of Bitcoin, driving the surge of the digital gold into a whopping US$1.5 billion.
According to Tesla’s statement, they will start using bitcoin as a payment method for their services soon.
‘We expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.’
According to Joel Kruger, a strategist in an exchange site called LMAX, the global adoption of cryptocurrencies is just around the corner.
‘We think this is just the start to a much wider adoption from household institutional names, finally ready to make the crossover into the crypto space,’ he added.
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