Bitcoin on Tuesday renewed all-time highs of about $ 48,300 on speculation that, following Tesla, more and more companies will consider the first cryptocurrency as an investment.
Experts are calling on tech giant Apple to follow Musk’s lead.
“Tesla’s $ 1.5 billion purchase of bitcoins was a trigger for speculators and investors. We see an increase in the use of BTC by businesses, which could be a new wave of acceptance of bitcoin as a means of payment, ”said the FxPro analyst team.
According to experts, Tesla has invested about 15% of its cash reserves in bitcoin. Apple could become the next major investor in bitcoin, according to RBC Capital Markets.
Apple could create a market of impressive size if it integrated the Apple Wallet with a cryptocurrency exchange, writes ttrcoin.
“The wallet initiative seems like an obvious multi-billion dollar opportunity for a firm with substantially more than $ 40 billion in annual revenue potential with limited research and development spending,” the bank notes.
Companies like Square, PayPal, and Coinbase have already tested the exchange model as a real line of business, and Apple will immediately grab market share if it decides to do so.
At the same time, if Apple buys bitcoins for $ 5 billion, that is, 20-25 days of its cash flow, then the BTC rate will increase by 10%, which will allow the company to fully recoup the project due to its potential profit.
Apple’s entry into the cryptocurrency trading market is a matter of time, according to RBC, as competitors have already announced similar projects.
Bitcoin could rise to $ 100,000 by the end of 2021 if other companies follow the lead of electric car maker Tesla, says Mike Novogratz, founder of the crypto bank Galaxy Digital.
Meanwhile, a former Goldman Sachs executive shut down purchases of Tesla shares following its Bitcoin investment. TSLA has always been a high-risk investment, but buying bitcoin for $ 1.5 billion makes it even more risky, he said.
If more and more companies, like Tesla, simultaneously view bitcoin as money and investment, it could create a self-sustaining spiral of BTC growth for months to come.
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