Apple Inc. has announced plans for a new credit card it’s looking to introduce next month. What’s the big catch? Users will not be able to purchase bitcoin or cryptocurrencies with the card should they hold interest in digital assets.
Apple Is Getting in the Way of Customers and Crypto
To that, many enthusiasts have a common question on their minds. “Hey Apple… Jealous, much?”
One must wonder if the move is potentially inspired by Apple’s fear of competition. The company has shown interest in cryptocurrencies in the past. In fact, one source suggests that part of the reason bitcoin and other digital currencies have rallied so much this year is because mega-tech companies like Apple and Facebook have shown such interest in them.
Now, the I-phone conglomerate wants to take away people’s chances of cashing in on the crypto craze and potentially adding more diversity to their investment portfolios. The reason is because the card is being issued in partnership with Goldman Sachs, the real estate investment enterprise. The company has a “secret clause” that says the card cannot be used to purchase anything speculative. This includes bitcoin and other cryptocurrencies, gambling chips, lottery tickets or anything of that nature.
It can be argued that this is both understandable and foolish. For one thing, all the items listed above are not “set in stone.” They’re not on the same plane as traditional, fiat currency. There is no guarantee with any of them. Crypto, for example, is known for its highly volatile nature. Gambling chips and lottery tickets are just that: gambles, which means people could spend on these items all their lives and get nowhere.
One can understand that perhaps Apple and Goldman are trying to protect their customers, but to disallow purchases of these items fully suggests that Apple is trying too hard to solidify itself as a legitimate financial institution, and in that respect, Apple cannot be compared to enterprises like Wells Fargo, Citibank, Capital One or similar businesses.
You’re Not in the Same League
These companies strictly work in finance. That’s all they do, whereas Apple is still more of a retail company, looking to release phones, iPads, computers and similar items. It’s a manufacturer, seller and distributor, and if it seeks entry into the financial arena, it will be a secondary venture for the company.
The fact is that Apple is trying to hard to be something it’s not. In the past, companies like Citibank and Capital One have barred customers from using their credit or debit cards to purchase cryptocurrencies through exchanges, but Apple does not have the track record nor the financial status of these companies to make similar maneuvers. The company has clearly profited from the crypto craze in the past, so why can’t its customers?
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
Blockchain 101 · Crytpo Currency Market
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange