RBC analysts claim crypto adoption can help Apple shares surge 25%
- Per the analysts, Apple already has a ready market waiting for crypto integration.
- RBC claims Apple’s adoption of crypto would make the US a technological leader for decades.
- Analysts believe that Apple’s entry into crypto would see BTC soar higher to set new highs.
Analysts at RBC Capital Markets, a global investment bank that offers banking, finance, and capital markets services, believe crypto adoption can help Apple shares soar. A report unveiled this news on February 8, quoting one analyst named Mitch Steves, who predicts that Apple shares can gain up to 25% if the company integrates crypto functionality in its wallet. Steves made this analysis after electric vehicle manufacturer Tesla announced that it had purchased £1.01 billion worth of BTC.
According to the report, Apple’s payment wallet already has millions of users as the world continues going cashless after the dawn of the Coronavirus pandemic. As such, the company is well-positioned to tap into the crypto sector, a move that would see it billions in additional revenue. Apart from this, Steve believes that Apple’s popularity can help the US become a technological leader in cryptocurrencies for a decade or two.
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Drawing comparison from Square, a US-based payments firm, RBC said,
Square takes in $1.6 billion a quarter through bitcoin-trading revenue from its roughly 30 million active users. Apple has an install base of about 1.5 billion people, signalling that it could make up to $40 billion a year from a Wallet-based crypto exchange.
A ripe opportunity to tap into the crypto market
Per RBC, Apple would face minimal development charges for the development of a crypto app. This is because Square’s research and development (R&D) budget amounts to less than £0.73 billion. The analysts went on to note that Apple should make a £0.73 billion investment in BTC. In so doing, the analysts believe the company will have made a powerful entry into the burgeoning industry, attracting more users to its wallet-based exchange.
On top of this, the analysts believe that a crypto investment announcement would have a similar effect, if not larger, as Tesla’s, which saw BTC surge past £32,670.
At the time of writing, the leading cryptocurrency is changing hands at £33,562 after gaining 9.46% over the past 24 hours and 31.43% over the last seven days. BTC’s daily volume is £81,982,629,340 and the coin’s market capitalisation is £619,975,187,080.