22.05.2024

Billionaire explains why Apple should start investing in Bitcoin

How Much Cash Does Apple Really Have? Most likely, even the most daring guesses can underestimate the investment potential of this firm. The tech giant has more than $ 196 billion in cash reserves, according to Apple’s January earnings report .

This is the largest indicator of any American company. And Apple’s stocks have a great use – investing in Bitcoin. That is exactly what venture capitalist Tim Draper thinks.

Recall that Tim Draper is a well-known figure in the cryptocurrency industry, as he also managed to make good money on them. The investor learned about Bitcoin in 2011, after which he invested a quarter of a million dollars in the cryptocurrency. However, his blockchain assets were held on the Mt. Gox, which fell prey to hackers. As a result, the bitcoins were stolen.

Draper didn’t give up on technology, however. He participated in the auction for the sale of assets of the said exchange from the US Marshal Draper, where he bought 29,656 BTC for $ 18.74 million.

Accordingly, the cost of one bitcoin for Tim was $ 632. And as Draper later said, he did not get rid of the cryptocurrency even when it set the previous all-time high of $ 20,000 at the end of 2017.

Does Apple have bitcoins?

The day before, Draper spoke at the 2021 Montgomery Summit conference and predicted investments in BTC from Apple. Here is his line in which he shares his own point of view. The statement is quoted by Decrypt.

If you are the CFO of a large company that has a lot of money, you will watch the dollar, which makes up the bulk of your reserves, go down. We need to somehow hedge against inflation. I mean, Apple has so much money. If they don’t buy something with it, their shareholders will naturally lower the value of the asset over the next three or four years, because there have been so many dollars issued lately.

This means that Apple should invest in bitcoins and other cryptocurrencies in order to insure its assets from depreciation due to the fall in the value of the dollar. This is due to the massive release of the world’s main currency.

Apple company investment

According to the AssetDash platform, Apple ranks first among the five largest companies in terms of capitalization

Draper, the co-founder of several venture capital firms including Draper Fisher Jurvetson and cryptocurrency-focused Draper Goren Holm, was referring to the perceived decline in the dollar’s value due to monetary expansion. The number of dollars in circulation has increased from $ 1.81 trillion in March 2020 to $ 2.1 trillion today. And this cannot but affect the value of the asset – at least in the future.

While currency devaluation and inflation have long been a topic of discussion among crypto enthusiasts, the issue became even more acute when the US Federal Reserve adopted an aggressive money-printing strategy during the COVID-19 pandemic to stave off an economic depression. The Fed is actively targeting inflation rates above 2 percent , which will significantly reduce the purchasing power of the dollar in the coming years.

Tim Draper billionaire

Tim Draper

Executives at companies like MicroStrategy and Tesla have already grasped the impending problems and converted some of their reserves into Bitcoin. In fact, the investments of large firms in cryptocurrency have caused its rapid growth in recent years. Both firms have already made very good returns on their investments, amounting to billions of dollars. So what’s stopping Apple from going down their path? Draper thinks nothing.

It is important to note here that Tim has predicted this is not the first time. In particular, this week he announced that Netflix should be the next one to invest in Bitcoin from the giant companies. He explained his point of view by the «innovation» of her leadership. Given the frequency of such statements, they do not look so confident.

Netflix platform

Netflix

We believe that the possibility of investing in the cryptocurrency market has already been considered by Apple’s management in one form or another, because now the rapid development of digital assets cannot be ignored. Most likely, the company is afraid of too high volatility of BTC – that is, the volatility of its rates. Also, the experience of previous bullish cycles of the coin market, when, after a rapid growth, the price of Bitcoin entered the bear market for several years and decreased by at least 75 percent, is probably also a possible obstacle .

However, such a situation should be used to accumulate assets, because in this case, the scale of growth of the cryptocurrency will be enormous. To illustrate, it is worth remembering March 2020, when Bitcoin headed towards the level of 5 thousand dollars. Since then, he managed to grow more than ten times – and all this within a year.

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