Building a car is more risky than speculating coins? Wall Street: Apple should buy Bitcoin
Bitcoin has set new highs one after another, with the price pointing straight to $50,000. A major Wall Street firm said: The risk of building a car is higher than that of speculating coins. Apple wakes up and it’s time to learn Tesla, which buys Bitcoin in a big way.
In the latest research report, Royal Bank of Canada (RBC) analyst Mitch Steves proposed that Apple may be the next well-known company to buy cryptocurrencies such as Bitcoin, and believes that if Apple will use Apple Wallet ) To develop into a cryptocurrency exchange, the growth will be considerable.
The above-mentioned analyst said that from the Apple Wallet alone, Apple does not need Bitcoin as an asset on its balance sheet, but should allow users to buy and sell encrypted assets.
Considering that Apple has a strong software ecosystem for a long time, it has high security, and the user’s software and hardware foundation is also very high. Once it “takes out”, it will certainly steal a large amount of market share from other cryptocurrency exchanges.
In this way, the valuation of the Apple Exchange business is expected to reach at least US$50 billion, which is similar to the previously estimated valuation of the well-known digital currency exchange Coinbase.
The report also wrote that Apple Wallet “transformed” into an exchange, “this is obviously a multi-billion dollar opportunity for Apple”. With limited research and development, annual revenue may increase substantially.
Specifically, Square has 30 million users, bringing in approximately $1.6 billion in bitcoin-related transaction revenue every quarter. The number of users of Apple Wallet is as high as 1.5 billion. Even assuming that only 200 million users participate in transactions, this is 6.66 times higher than Square, which means more than $40 billion in revenue growth space per year.
However, Steve also believes that Apple may purchase coins directly as Tesla did, which will attract more users to the Apple Exchange and may further push up the price of Bitcoin.
Assuming that Apple’s balance sheet can increase by $1 billion (this is only 4 to 5 days of cash flow), the price of Bitcoin will rise sharply. Assuming that the cost of developing an encrypted wallet/exchange in the Apple ecosystem is $500 million, by buying Bitcoin, Apple can solve the problem of development cost. Assuming that Apple bought 5 billion U.S. dollars in Bitcoin (20-25 days of cash flow), and the price of Bitcoin only increased by 10%, the start-up capital for Apple’s project would be sufficient.
RBC said that this operation is reasonable, because not only can Apple’s wallet business obtain funds, Apple’s other projects, such as iPhone manufacturing, self-driving cars, etc., can also proceed smoothly without financial pressure.
As Wall Street made the above judgment, Tesla just announced that as part of the latest investment policy in January, it has invested a total of 1.5 billion US dollars in Bitcoin and may acquire and hold digital assets from time to time or for a long time.
Tesla also stated that it expects to begin accepting bitcoin as a payment method for its products shortly, comply with applicable laws and will initially proceed on a limited basis.
After the news, the price of Bitcoin soared like a rocket. It rose by 20% within 24 hours and has now risen above 47,000.
In the future, whether Apple will follow in Tesla’s footsteps to buy Bitcoin is not known in the market. But it is worth noting that Apple has indeed done Tesla’s old line-building cars.
Nikkei previously quoted a supplier’s executives as saying that Apple is negotiating with at least six automakers on the development of electric vehicles and is testing the intentions of Japanese automakers.
Senior Apple analyst and “Prophet” Guo Mingchi predicts that Apple will release cars as soon as 2025. Apple Car will use Hyundai’s E-GMP platform released in December last year. Play a leading role in production; Kia will provide its American production line to produce Apple Cars. If the cooperation model with Hyundai goes well, Apple will cooperate with General Motors and Citroen to develop other Apple Car models or enter other markets.
However, South Korea’s Kia Motors and Hyundai Motors have announced on Monday that the two currently “have not negotiated with Apple on the development of self-driving cars.”