The current exchange rate means that investing $3,200 in stimulus cheques into Bitcoin now will provide a profit of $4,514 (or over 71 percent) by the end of October. In an effort to boost the economy, the US government sent three rounds of stimulus cheques to the typical American taxpayer. So naturally, there were those who looked at this as a chance to make money by purchasing Bitcoin (BTC).
Researches conducted reveals the following
Research conducted on August 26 found that 11% of respondents between the ages of 18 and 34 spent a portion of their stimulus cheques in cryptocurrencies. According to the Bitcoin Foundation, a net return of roughly 442% was achieved by adult Americans who reinvested the first round of stimulus funding from April 2020 into Bitcoin, changing a $1,200 investment into $5304 as of October 31, 2021.
Stimulus investment growth
Between December 2020 and January 2021, a second $600 stimulus check was given out, only two months before Bitcoin hit a record high of $65,000 for the first time. This second check’s profits would provide almost $312, or 152%, on the original investment. According to Treasury Department projections, taxpayers who qualify will get the third stimulus check in March 2021 and will receive an average payment of $1,400. A three-month bear market ensued until Bitcoin completely recovered to reach its all-time high trading value of over $65,000 for the first time. Even with market volatility, reinvesting the third stimulus check would provide a modest 7 percent return or $98 at writing.
PlanB bitcoin data projections
Data shows that early investments in Bitcoin of $3,200 in stimulus cheques will result by the end of October in a total gain of $4,514 (almost 71% of the original investment). Moreover, it turns out that most Americans who are ready to invest in cryptocurrencies favor Bitcoin and Ether as principal assets, according to a Harris Poll done for Yahoo Finance (ETH). PlanB, a crypto specialist, has predicted a rise in Bitcoin’s value for the third month in a row. PlanB predicts that Bitcoin will be worth $98,000 by the end of November. As a result, the stimulus check investments predicted an additional 58 percent profit margin above today’s market pricing.
El Salvador’s presidents invested in Bitcoin
A country in El Salvador has started reinvesting its US dollar reserves in Bitcoin purchases after accepting Bitcoin as legal money for the first time on September 7. According to President Nayib Bukele’s announcement on October 28, there are now 1,120 BTC (or $87.4 million) in the nation’s reserve, up from the previous 1,120 BTC. Bitcoin, according to Bukele, creates a profit for the nation, and a similar amount of the country’s dollar reserves is reinvested to support a variety of activities. Because of this, the value of El Salvador’s national reserves in US dollars has not altered from where they initially were.
Sources: Yahoo finance, Twitter.