On Tuesday morning, bitcoin continued to surge, up more than 20% in 24 hours, breaking through the $46,000 and $47,000 barrier one after another. Coming into the European session, bitcoin’s rally continued and managed to take down the 48,000 mark.
On Monday night, the news of tesla buying bitcoin ignited the cryptocurrency market, followed by an all-out surge in cryptocurrencies, and bitcoin’s market capitalization surpassed $79 billion in one fell swoop, moving it to 8th place compared to the market capitalization of well-known companies’ stocks, surpassing Facebook (market capitalization now reported at $765.157 billion) and ranking behind Tesla (market capitalization now reported at $807.829 billion).
According to Royal Bank of Canada (RBC), Apple could be the next company to buy cryptocurrency and should develop Apple Wallet into a cryptocurrency exchange.
Mitch Steves, an analyst at the investment bank, said that if Apple Wallet is developed into a cryptocurrency exchange, launching an “Apple Exchange” similar to coinbase, it could create a huge growth market. In a report to clients, he wrote.
“The Apple Wallet initiative is clearly a multi-billion dollar opportunity for Apple (with potential annual revenues of over $40 billion and limited R&D resources required).”
The Royal Bank of Canada analyst said that by the Time Apple buys $1 billion in bitcoin, more users will flock to the “Apple Exchange. To be sure, Tesla’s statement confirms that it’s only a matter of time before some of the most advanced companies increasingly adopt bitcoin, and that it’s more likely to happen after that.
He argues. Companies like Square Inc. and PayPal Holdings Inc. as well as exchanges like Coinbase have confirmed that the trading model is real business and that Apple will gain market share immediately if it enters the industry. In addition, Apple’s ecosystem will provide a higher level of security relative to its competitors.
While Apple is likely to expand into the cryptocurrency market currently dominated by Coinbase and Paypal, one of the more controversial points made by the RBC analysts is that Apple may incorporate bitcoin directly into its balance sheet, as Tesla is doing now.
Apple, however, has been cautious about cryptocurrencies. in 2014, the company banned cryptocurrency wallets from its App store, but has since reversed its decision and now allows them. However, the company still prohibits users from mining cryptocurrencies on their iPhones and does not allow its Apple Card credit card to be used to purchase cryptocurrencies.
Eric Turner, vice president of market intelligence at cryptocurrency research and data firm Messari, said.
“I think now that Tesla has taken the first step, we will see more companies looking to deploy bitcoin.”
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