Apple has $191 billion in cash, will it flip to Bitcoin (BTC)?

October 30, 2020 Editor Litecoin 0

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  • The Crypto community speculates on possible investment in Bitcoin from Apple or Microsoft to protect their cash profits.
  • MicroStrategy operates a full Bitcoin Node (BTC) as announced by its CEO, Michael Saylor.

A debate has started in the crypto community about which will be the next technology giant to invest in Bitcoin (BTC). After PayPal’s announcement about the addition of Bitcoin, Ethereum, Litecoin and Bitcoin Cash to their crypto service a Bitcoin rally has begun. Adoption levels are at an all-time high on an institutional level.

Will Microsoft invest in Bitcoin first?

The first S&P 500 giant to announce a Bitcoin-centric investment was MicroStrategy. The company invested more than $400 million in BTC to protect its cash earnings. Since then, it has been estimated that MicroStrategy has made a profit of $100 million from its Bitcoin purchase, surpassing the profits it has made from its operations in the past 3 years.

Personalities such as Max Keiser, the Winklevoss brothers, Scott “The Wolf of All Streets” Melker have discussed the possibility of other companies following MicroStrategy’s strategy. Among them, Apple and Microsoft are the leading candidates. According to a CNBC report, the technology company has $191 billion in revenue in effect at hand.

Due to the current economic outlook, Keiser has said that Apple’s profits are “a melting ice cube”. This is due to the inflation caused in the U.S. dollar by the Federal Reserve’s measures. Macroeconomic experts such as former Morgan Stanley’s president for Asia, Stephen S. Roach, have predicted a drop of up to 35% for the U.S. currency.

Bitcoin developer Samson Mow and David Nage have agreed with Keiser and invited Apple’s CEO to put at least 2% of the company’s cash earnings into Bitcoin. This would represent more than $20 billion in a large BTC purchase. One user has responded to Keiser that tech-giant companies make money “so fast because they don’t create value” and bet that Microsoft would get into the crypto market before Apple.

The Wolf of All The Streets believes that at least 1% of Apple’s cash earnings would be sufficient for the company to follow MicroStrategy’s Bitcoin center investment strategy. In addition, the trader added:

Also, this may be a good time for the US to STOP BUYING APPLE’S DEBT. Corporate socialism, even for the companies most flush with cash.

Gemini exchange’s founders, Cameron and Tyler Winklevoss, have been highly bullish about Bitcoin and hope that the cryptocurrency will reach a new all-time high before the end of 2020. Referring to the purchase of Bitcoin from MicroStrategy and Square, Cameron said:

Bitcoin is on its way to becoming a corporate treasury asset. Michael Saylor and Jack Dorsey are leading the charge. Soon many other companies will follow, and eventually central banks. This is just the beginning…

Saylor, CEO of MicroStrategy, recently revealed that he owns more than 17,000 BTC, a purchase that he made before recommending it to his company’s board. In addition, he revealed yesterday that MicroStrategy has begun running its own full Bitcoin node, an announcement that has been celebrated by the crypto community.