Will Apple be the next company to adopt Bitcoin after Tesla?

Earlier today, Tesla Motors announced that it has made a major purchase of Bitcoin and plans to introduce crypto payments in the future. Some in the industry are now speculating that Apple will be the next corporate player to adopt crypto assets.

In a market report by Royal Bank of Canada Dominion Securities analyst Paul Steves, the tech firm’s introduction into cryptocurrencies could generate more than $ 40 billion in annual revenue and cause waves across the industry.

This forecast was based on the revenue history of Bitcoin (BTC) at Payments firm Square, which reported revenues of over $ 1.6 billion from BTC in the third quarter of 2020. Square has nearly 30 million active monthly users, which is a fraction of Apple’s install base, according to CEO Tim Cook, will be 1.65 billion devices as of January.

“if [Apple] Deciding to enter the cryptocurrency exchange business, we believe the company can instantly gain market share and disrupt the industry, ”Steves said, adding that this move could help make the United States a leader in crypto for up to 20 years. Open a billions of dollars in opportunity with a few clicks. “

Earlier today, Tesla Motors announced that it has set aside a portion of its balance sheet for Bitcoin and will provide crypto payments for its cars at a later time. The introduction of a high-profile player in the tech industry – and the subsequent spike in the price of BTC to an all-new high – has led many in the crypto community to demand that Apple be next.

In November, Dan Weiskopf, portfolio manager for Toroso Investments, said that an investment of between $ 10 billion and $ 20 billion in Bitcoin would be more profitable in the long term than a technology company that is “aggressively repurchasing shares”. He added that investing in cryptocurrencies would also be a hedge against inflation.

With a market value of over $ 2.2 trillion, Apple is the most valuable company in the world and has nearly $ 200 billion in cash on hand – which is virtually enough to buy 25% of all Bitcoin in circulation.