Tim Draper Believes Apple Should Be Considering Investing In Bitcoin
Bitcoin is the most valuable cryptocurrency in the world, and that is no news. The assets are also the most popular and continue to be attractive to many inside or outside the cryptocurrency space. The growth of digital assets in the last few years has been exceptional, as even critics of digital assets have started to flock around it recently.
However, more frequent these days is purchasing the assets by many institutional investors like Tesla, who prefer to commit their treasury reserves to the cryptocurrency, ahead of other known traditional assets. This occurrence has led Venture Capitalist Tim Drapper to suggest that Apple should also be looking towards digital assets by now.
Drapper believes Apple will be doing their investors right by investing in crypto
Apple Inc. is one of the most valuable technology companies globally, reportedly worth more than $2 Trillion. In a report released by the tech giants, they confirmed to have about $196 billion of their earnings in cash, and by doing so, become the only known company to have such vast amounts of funds outside of a bank.
However, Tim drapper has advice for the tech giant CFO, as he suggests that they look towards putting the money in Bitcoin. The investor believes that the U.S dollars’ devaluating nature does not make it a suitable currency for investments and savings. The founder of Drapper University also gave an example of dollars in circulation, which has gone higher today than it was a year ago. He believes that with the prevalence of inflation, Apple will not have so much value for its savings in the long run.
The Venture Capitalist also believes that the company, in the long run, is putting the profits of their shareholders at risk if it continues to keep such vast amounts of money in fiat currency. The combative nature of the U.S government against the harsh economic impact of COVID-19, by printing more dollars in circulation, is also believed to have hampered the currency’s purchasing power.
Should Apple follow the lead of others?
While the suggestions of Tim Drapper to Apple will likely have no significant impact on whether or not the tech company wants to follow other institutional players into the Bitcoin space, it is viewed as a significant one by many analysts. Microstrategy and Micheal Saylor’s decision to buy Bitcoins last year has seemed to have generated rewards of almost 97% for the company, even at the dip market price of Bitcoin today.
Microstrategy has spent about $2.1 billion on Bitcoins, and its portfolio is currently worth almost $4.5 billion as of today. Tesla also committed $1.5 billion to the cryptocurrency, an investment that is already profiting from Elon Musk’s firm, even at today’s prices.
Jack Dorsey’s Square is also amongst the institutional investors of Bitcoin, as they have also committed considerable funds to the digital. All evidence suggests that Dapper is right, and Apple should be taking a second glance at Bitcoin.
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