A few weeks ago, Apple CEO Tim Cook hit the headlines when he said he personally owned the cryptocurrency, while mentioning that Apple was looking at it from a technology perspective, but not from a treasury decision. What will Apple do with bitcoin and cryptocurrencies?
It’s something we’re looking at, it’s not something we’re currently planning to do. I would characterize it by the fact that there are things I would not do such as our cash balance. I wouldn’t go and invest it in cryptocurrencies not because I wouldn’t invest my money in cryptocurrencies, but because I don’t think people buy Apple stock to be exposed to cryptocurrencies. So, if they want to, they can, you know, invest directly in crypto in other ways. And I wouldn’t do that. I do not plan to take cryptocurrencies for our products in the near future. Like a mane of tenderness, but there are other things we definitely look at.
During the interview, Cook revealed that he owns cryptocurrency, saying “it is reasonable to own it as part of a diversified portfolio”, while also noting that “he does not give anyone advice to invest”. However, Cook did not mention whether he owns Bitcoin or some other type of cryptocurrency.
What will Apple do with cryptocurrencies?
Apple has plans for its retail financial industry. Its Apple Pay service allows people to send money in certain jurisdictions via iMessage. It also has its own Apple Wallet app and related Apple Pay services for mobile payments. Apple wants to expand its services business, and rejecting banking services is an ideal way to do that. What does this have to do with cryptocurrencies?
I believe that Apple will soon install a Bitcoin wallet directly in the Apple Wallet, while at the same time providing a cheap way to buy Bitcoin on the iPhone.
With Bitcoin wallets – where you maintain complete control over your bitcoin and move it from an exchange like Coinbase – you are responsible for securing your wallet with a basic phrase. I personally recommend using several Vault or Ledger hardware wallets with a multi-character vault with a company such as Unchained Capital to eliminate individual breakpoints with your Bitcoin wallets. I also recommend using a steel wallet such as a billfodl to secure your seed phrase in case of hardware failure.
For newcomers to Bitcoin, this whole process may seem overwhelming, which is why I think Apple could approach it in several ways:
- You work like Exchange
- Set up a software wallet with iCloud backup of the original phrase
- Use Bitcoin Lightning Network for Apple Pay Cash
If Apple operates as a Bitcoin exchange, it will allow you to purchase bitcoin directly in the Apple Wallet app using any payment method you have on record. They will allow you to store your assets in the Apple Wallet while Apple itself will keep the keys. It will be very similar to what the Cash App or Coinbase does, where you can send, receive and store Bitcoin without having to store your opening phrase.
If Apple installs a software wallet directly on the iPhone, it will probably look similar to BlueWallet, where you take care of your own Bitcoin by backing up your opening phrases. You will own your Bitcoin keys directly on your iPhone and be responsible for backing up the original phrase. If Apple goes this route, I assume it will install an encrypted iCloud backup of your basic phrase.
Finally, Strike is the company I was able to see Apple team up for global Apple Pay Cash transactions. Twitter is already working with the company on its tip service. Strike is doing a few things that might be of interest to Apple:
- No bitcoin fee options
- Sending money to anyone in the world in which they do business
It creates a global payment system using Bitcoin as a medium for transactions. If I want to send money to someone in another country, I bring in dollars, he converts them into Bitcoin and converts them back into local currency when he receives them. It sounds simple, but it’s a pretty revolutionary way to process payments globally for free.
Why would Apple do anything with Bitcoin and cryptocurrencies?
After all, Bitcoin is becoming a significant force to be reckoned with in our world. With limited supply, decentralization, and digitalization of our financial system, it is likely to continue to play a significant role as digital gold and the global settlement network. Apple doesn’t want to miss a huge change in technology as it seeks to increase service revenue and become a significant player in the financial services industry.
It is also possible that Apple will use Bitcoin as a layer for transactions in its online store when the company is concerned about the stability of the local currency as we recently saw in Turkey.
How does Bitcoin work with Apple’s focus on green energy?
The use of Bitcoin energy is a common debate among its critics. While there’s a lot to unpack here, I’ve found that the video I’ve embedded below is a great source to explain how there’s more to the discussion about Bitcoin and energy use than most people would believe.
TL; DW: The Bitcoin network uses less energy than the use of Christmas lights in the United States.
What do you think Apple will do with bitcoin and cryptocurrencies? Leave a comment below! Interested in learning how to buy Bitcoin? We have compiled a detailed guide on the best applications for buying Bitcoin on your iPhone
FTC: We use auto affiliate links to earn revenue. More.
Watch 9to5Mac on YouTube for more Apple news:
Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.