Wall Street’s RBC Capital Markets recently remarked in a note to its clients that Apple Inc. should follow Tesla by getting into cryptocurrencies and should forego the EV dream for now.
According to Mitch Steves, an analyst who works for the firm, a move into the crypto game will allow Apple to gain a massive market share mostly because of the company’s high-end software and secure ecosystem, and Apple Wallet could play a big role here.
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Steves suggested that the iPhone maker could potentially create a new market for growth by developing its Apple Wallet into a crypto exchange, adding that “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]”.
The Apple Wallet is a dominant contributor to the company’s robust services business, and an expansion into the crypto sector could make it an even bigger boon.
RBC Capital Markets suggests that the move will make the United States a global leader in crypto holdings, may strengthen Apple as a leader in the industry, and potentially eviscerate the possibility of a ban on cryptocurrencies in the country.
Ever since cryptocurrencies came into existence, Apple has approached the market with extreme caution from a distance. It had banned crypto wallets from the App Store in 2014, but later reversed the decision and now allows full integration of them.
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Although the future of crypto is uncertain, it is clear that tech conglomerates like Tesla have expressed readiness to test the digital waters for improved financing.
With their potential, companies like Apple could follow suit by investing into Bitcoin or by developing a new crypto exchange and channeling investors through it for mammoth gains.
