Should You Follow Apple CEO’s Tim Cook Example and Invest in Cryptocurrency?
In recent years, cryptocurrency has become a popular means of investment. Today its endorsed by technology industry giants like Tesla and celebrities such as Brazilian footballer Ronaldinho, who believe in the future of cryptocurrency. Just recently, Apple CEO Tim Cook confirmed he personally owns cryptocurrency, further supporting the bullish sentiment driving the current cryptocurrency market. As the news of Tim Cook’s cryptocurrency ownership spread across social media, people have speculated that Apple itself may begin accepting cryptocurrency as a payment method. As one of the companies with the most cash reserves in America Apple has reportedly close to $200 billion in cash and marketable securities. What effect will this have on the cryptocurrency industry if this speculation is proved to be true?
What are Tim Cook’s views on cryptocurrency?
Tim Cook discussed cryptocurrency at a New York Times DealBook conference on November 8, when he was asked if he owned Bitcoin or Ether. Cook replied that he believed “using cryptocurrency as part of a diversified investment portfolio is reasonable”. His remarks align with exchanges such as BigONE and cryptocurrency investment experts who believe cryptocurrencies can play a role in a well-diversified investment portfolio. The advice for people new to investing is to fund your investments according to their own investment strategy, with a clear understanding of the risks involved, which includes never investing more than you can afford to lose. Tim Cook stated in the interview that he invested in cryptocurrencies to diversify his portfolio, whilst not specifying which cryptocurrencies were included in his portfolio.
Bitcoin proponent MicroStrategy CEO Michael Saylor tweeted in response to the news: “If @Apple were to add support for #Bitcoin to the iPhone and convert their treasury to a Bitcoin Standard, it would be worth at least a trillion dollars to their shareholders. $AAPL”. Michael Rihani, the new crypto product lead at CashApp and Square, and previously with Tesla and ApplePay replied in a tweet to Saylor with a cautionary note about Apple’s plans for crypto: “@saylor when @erickuhn19 and I worked at Apple Pay 4 years ago, we told executives the same exact thing. Hence I went to work for CEOs who really understand #Bitcoin, @elonmusk and now @jack.”
Will Apple start to accept cryptocurrency payments?
Although Cook is a cryptocurrency owner, he made it clear this does not imply that Apple will invest its funds in cryptocurrencies. This confirmation distinguishes the Apple CEO from other well-known business leaders who are avid cryptocurrency enthusiasts, such as Dallas Mavericks owner Mark Cuban and Tesla’s Elon Musk. The NBA team Dallas Mavericks accepts Dogecoin as payment, and Tesla a Bitcoin holder and is considering accepting Bitcoin as payment for Tesla vehicles again, after halting payment in BTC in May over concerns regarding its environmental impact.
While its incorrect to claim that Apple has nothing to do with cryptocurrency it doesn’t currently have any cryptocurrency products or services. Apple currently prohibits the listing of mining applications on its iPhone App Store, while allowing the existence of cryptocurrency wallet apps. However, Apple may do more in the crypto field in the future. As reported by CNBC, an Apple Pay executive said in 2019 that the company saw “long-term potential” in cryptocurrency. Tim Cook also stated that Apple may include cryptocurrency-related issues in its future development plans, it’s “not something we have immediate plans to do.”
Should you start investing in crypto?
With Apple’s CEO recognizing cryptocurrency as a reasonable investment method, it will no doubt inspire the interest of those who have been on the fence about investing in cryptocurrency. As with Cook, before investing in cryptocurrencies, investors should conduct extensive research including studying BigONE’s articles on the subject.
There are numerous methods for investing in cryptocurrencies. Buying low and selling high is the most basic investment strategy. Futures transactions, DeFi mining pools, Swapbox aggregate transactions, liquidity mining, and other investment methods are also available to the more advanced investor. What’s more all these investment options are available on our exchange, backed up with educational resources and customer support. BigONE recommends that investors carefully evaluate the volatility of the cryptocurrency market before investing, as well as clarify the risks and benefits of investing in cryptocurrencies, so that they can make an informed decision about whether they should be part of their investment portfolio.