Apple Should Enter the Cryptocurrency Business Next, Says RBC Capital Analyst Mitch Steves

Apple Should Enter the Cryptocurrency Business Next, Says RBC Capital Analyst Mitch Steves

Mitch Steves, a research analyst at global investment bank RBC Capital Markets, thinks Apple should get into the crypto exchange business.

In a new CNBC interview, Steves says that based on other participants in the marketplace, Apple could potentially spend about $500 million on research and development of a crypto exchange to generate tens of billions of dollars in equity value.

“I really do believe this is a pretty clear opportunity in my opinion, because if you look at Square’s R&D (research and development) budget, they spend about $670 million per year. Apple generates cash flow of that amount in less than 2 and a half days. So the amount of R&D expense it would take to create a crypto exchange for them – just to be clear, they don’t even need to own any crypto assets – they could just create an exchange.

And if you run that math, Coinbase right now is going public through a direct listing and they’re valued at $50-80 billion with only 35 million people as their install base. Apple has a 1.5 billion [person] install base, and they sell 200 million phones per year, so what prevents Apple from utilizing its best asset – which is software, a closed ecosystem – and basically putting people onto a crypto wallet and then making money off the fees?”

Steves adds that he doesn’t think cryptocurrency is going away any time soon, and that developing an exchange would be a low-risk way for Apple to get in on the action without exposing themselves to the volatility of any one particular asset.

“If I was working at Apple as a strategy officer, this is legitimately something I would do. Because if you can invest $500 million to potentially create $50 to $80 billion in equity value, that’s a lot more compelling to me than trying to compete against an Elon Musk and Tesla, a distributed energy company where you’re going to spend $15 to $20 billion just for a maybe.”


Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/blackzheep

Source link


Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings



What do you think?

Market Outlook #111

Market Outlook #111 – An Altcoin Trader’s Blog


Bitcoin Driven Higher by TWAP Buying as Price Stabilizes at All-Time Highs