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Saturday, October 1, 2022

Stimulus Checks Reinvested In Bitcoin Returned Profits Of About $4.5K

3 stimulus check rounds have been sent out to the average taxpayer in America by the government of the United States. They were issued as a method to refuel the economy as the government hoped the extra cash would increase the spending potential of customers. Some Americans, meanwhile, took it as a chance for investing in Bitcoin.

A Timely Use Of Stimulus Checks

On 26th August, a report by Cointelegraph showed that one-tenth of the people they surveyed between 18 and 34-year-olds chose to reinvest a portion of the stimulus check money into cryptocurrency. Adults who had chosen to reinvest their first stimulus check from 2020 April worth $1200 into Bitcoin had reported a healthy profit. The net profit has been about 442%. As such the investment worth $1200 had returned $5304 until 31st October 2021.

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The 2nd round of stimulus checks was worth $600 and was sent out from 2020 December till 2021 January. A mere 2 months later, Bitcoin would hit a record $65,320 high. The second relief check would have returned a 152% profit (about $312) if it was reinvested in the cryptocurrency.

The average amount paid out during the third round was $1400, and taxpayers who were eligible received the money 2021 March onwards. After that month, Bitcoin turned bearing for about 3 months before recovering completely and crossing $65000. Despite the fluctuating value, the 3rd relief check, if reinvested would have returned a 7% profit ($98) when the article was being written.

Given the above findings, if the entire $3200 worth of relief aid was reinvested timely into Bitcoin, then it would have returned an almost 141% profit ($4,514) by 31st October. Most of the Americans who were interested in investing in cryptocurrencies stated that Ether (ETH) and Bitcoin were the top picks.

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