ApplePay will now allow users to make purchases using Bitcoin
Bitcoin is still the most famous cryptocurrency. And at Friday's close, each Bitcoin was valued at close to $48,000, more than double the valuation of the digital currency about a year ago. Not only can you buy more with your Bitcoins, you can find it easier to spend thanks to the Apple Pay mobile payment service. The BitPay wallet app's Prepaid Mastercard can be added to the Apple Wallet and Apple Pay can help Bitcoin owners spend the cryptocurrency online, through apps or in a store.
Apple could generate over $40 billion in revenue should it create a wallet-based cryptocurrency exchange
The BitPay wallet app not only works with Bitcoin, but will also work with Ether, Bitcoin Cash and as well as the dollar-pegged stable coins USD Coin, Gemini Dollar, Paxos Standard and Binance USD. The stable coins are based on a 1:1 ratio with the U.S. Dollar. For every Gemini Dollar in circulation, there is a corresponding U.S. Dollar held by the State Street Bank and Trust Company.
Apple allows Apple Pay users to add a Bitcoin credit card to their wallet
There are plans in the work to add support for the BitPay Wallet by the end of next month with other mobile payment services Google Pay and Samsung Pay. This will allow Android users to more easily spend Bitcoins and other cryptocurrencies including the aforementioned names that are pegged to the U.S. Dollar.
To add your BitPaycard to Apple Wallet, you need to have the latest version of the BitPay app. The latter, which can help you securely store, spend, and manage Bitcoin, can be installed from the App Store and the Google Play Store. BitPay CEO Stephen Pair (both of him) said, "We have thousands of BitPay Wallet app customers using the BitPay Card. Adding Apple Pay and soon Google and Samsung Pay makes it easy and convenient to use the BitPay Card in more places."
A report by RBC Capital Markets says that Apple should do even more when it comes to digital currencies; should Apple add a cryptocurrency exchange it could generate over $40 billion. RBC analyst Mitch Steves believes that this would allow Apple's shares to rise 25%. RBC noted that "Square takes in $1.6 billion a quarter through bitcoin-trading revenue from its roughly 30 million active users. Apple has an install base of about 1.5 billion people, signalling that it could make up to $40 billion a year from a Wallet-based crypto exchange." The report adds that "if Apple went down this path, the USA would likely acquire the most crypto assets from a global perspective. If the USA owns the most crypto assets (be it Bitcoin or other assets), it would not make logical sense in our view to ban it. In addition, with Apple's secure and world-class software, the USA would be able to have confidence in user information and balances if needed in the future."
Apple's big move comes right after Tesla CEO Elon Musk showed interest in cryptocurrency Dogecoin. Tesla says that it soon will accept Bitcoins as payment toward the purchase of a Tesla vehicle. RBC's Steves notes that the combination of Apple's interest in Bitcoin and Apple's popularity in the tech world can help the U.S. become the technological leader in cryptocurrencies for as long as the next 20 years.
Thanks to the Blockchain technology, the method used to keep track of Bitcoin transactions, using the cryptocurrency is secure. Data on transactions is kept inside blocks and when a block is full, it is chained to the previous one. If someone wants to steal Bitcoin and hacks into the Blockchain to alter the information in one the blocks, it can't be done without all members of the Blockchain spotting the changes. There are smartphones that can store and verify cryptocurrency transactions such as the HTC Exodus 1s.