Apple should create Crypto exchange and buy Bitcoin: RBC Capital Markets

Apple should create Crypto exchange and buy Bitcoin RBC Capital Markets
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Apple Inc. should follow in Tesla Inc.’s footsteps, but by getting into cryptocurrencies, not electric vehicles, according to RBC Capital Markets. Apple could create a sizeable new market for growth if it were to develop its Apple Wallet into a crypto exchange, said analyst Mitch Steves.

”The wallet initiative appears to be a clear multi-billion dollar opportunity for the firm (potential for well over $40 billion in annual revenue with limited R&D),” Steves wrote in a note to clients.

Companies like Square Inc. and PayPal Holdings Inc., along with closely held trades like Coinbase, have all substantiated the exchange model as a real business, he said, and Apple would instantly gain market share if it were to enter the enterprise. Besides, Apple’s ecosystem would contribute to enhanced security comparative to the companies that would be its rivals.

Apple shares, up about 70% in the past year, closed up about 0.1% in Monday’s session. PayPal has surged almost 40% since it declared openly it would permit customers to buy, hold and sell cryptocurrencies directly from their PayPal accounts.

crypto fever

RBC’s remarks arrive at a time when businesses have been exhibiting more involvement in Bitcoin and other cryptocurrencies.

Tesla invested $1.5 billion in Bitcoin and reflected its interest in ratifying the cryptocurrency as a means of payment Monday. That enabled Bitcoin prices to go up as much as 16%, cresting $44,000 and hitting a record. Tesla rose 1.3% on Monday.

While Apple’s largest cryptocurrency chance would be in composing an exchange, it could moreover consider adding Bitcoin or another digital currency to its balance sheet, RBC wrote. “This would send even more users to ‘Apple Exchange’,” Steves said, and would likely further heighten Bitcoin prices.

Earlier on Monday, Hyundai Motor Co. and Kia Motors Corp. said they weren’t in dialogues with Apple to create an autonomous vehicle. While analysts have been positive about the odds of Apple arriving in the automotive industry in some fashion, RBC was less demonstrative, writing that such an action was a higher-risk recommendation than crypto.

Written by Ritik Gupta

His name is Ritik Gupta; currently pursuing law. He has always kept pride as his everything. He deems writing as not like any other hobby but a reflection of one’s intellectuality. He likes to research on the parasitic problems and then lay them down in such a means that can be of assistance to the society. He just not studies law but treats it a controversial weapon to defeat the wrong.

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