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Will other technology giants join Tesla by investing their cash in Bitcoin? Silicon Valley investor Tim Draper believes these firms stand to gain.
With a Bitcoin at $200,000 or $250,000 by the end of 2021, it may seem particularly attractive to invest in cryptocurrencies. Low interest rates and the massive issuance of dollars are in any case an incentive to look for other investments.
Square, MicroStrategy, Tesla are among the listed companies that have made the decision to invest their cash in Bitcoin. But for Grayscale Investments CEO Michael Sonnenshein, these companies are “led by visionaries. »
Other, more conservative companies are still reluctant to invest their cash in this way. Yet, says Draper, companies with cash on hand would be better off allocating some of it to Bitcoin.
Apple would be an ideal candidate. Why would Apple be an ideal candidate for Bitcoin? Because the telephone giant has no less than $196 billion at its disposal according to its financial results. “If you’re the CFO of a big company with a lot of money, you’re watching the dollar go down,” says Draper.
“Apple has so much money. If they don’t buy something with that, their shareholders will naturally see the value of that asset decline over the next three or four years,” adds the venture capital expert.
He was attending a conference, the Montgomery Summit. Earlier, Tim Draper predicted that Netflix would be the next big company to invest its cash in Bitcoin.
Apple and Netflix holders of BTC? The subject is not current. And the investor recognizes it. The first step for the Cupertino giant could therefore possibly be to accept crypto as a means of payment via ApplePay.
Michael Sonnenshein is more cautious in his predictions. He believes that Apple is in the category of conservative companies. “I think that in the year 2021 you will see other companies, perhaps not as visionary or disruptive, start to put Bitcoin on their balance sheets. »
And because of its significant cash flow, Apple might be tempted by the adventure, he suggests. The current low yields would be a legitimate incentive.
“There is no longer any risk in considering diversifying part of your cash flow program into an asset like Bitcoin,” concludes Grayscale’s boss.