A recent study has shown that the stimulus checks given to Americans to cushion the coronavirus’s effect would have gained $1,800 if invested in Bitcoin.
According to the study, the government started handing out the $1,200 stimulus checks when the pandemic forced them into a much-needed lockdown. Furthermore, the study revealed that if you invested your full stimulus check in Bitcoin at the time, you would have $3,000 going by the rapid rise that the coin has experienced in the last few months.
History of the $1,200 U.S governments stimulus checks
The global population was caught by surprise in the early parts of this year when the coronavirus pandemic broke out, catching governments off guard. However, things were going to worsen as countries worldwide started to record a surge in confirmed cases with death tools on the rise. The next thing that followed was the announcements of imminent lockdowns in countries worldwide.
Governments were trying to reduce the rapid increase of cases by keeping people in their houses as businesses and other contact events were ground to a halt. While firms and activities stopped, it didn’t take long before telling on the economy.
Even though most people have debated the need for lockdown considering the virus’s high recovery rate, one negative impact is that majority were laid off while some people lost their investments. To reduce the financial strain of the lockdown on people, governments across the globe started to issue stimulus packages to its citizens.
However, America led the discharge of stimulus packages after it earmarked trillions of dollars to be distributed to its citizens during the lockdown. The U.S government gave all citizens who were earning below $75,000 annually $1,200 stimulus checks sent out in April.
The dollar has experienced a decline in value since issuance of stimulus checks
Even though there were reports that most people used their stimulus checks to buy Bitcoin at the time, other reports claimed that people majorly bought food and paid their rents. A report even claimed that Coinbase, a United States-based crypto exchange saw an increase in the number of people that bought Bitcoin worth $1,200 at the time.
By now, most of the checks would have been spent but one cannot help but imagine what would have happened if a stimulus check was invested in Bitcoin at that time. When the checks were disbursed, the crypto community on Twitter created a profile that tracked the leading digital asset price of Bitcoin since then.
According to the reports of the Twitter profile, Bitcoin traded between the $6,600 and $6,800 region when the checks were being distributed. If you bought Bitcoin with your stimulus checks then, you would have witnessed a return in investment of 142% and a gain of $1,800.
While Bitcoin has experienced success since that period, much cannot be said for the dollar as it has declined considerably since then. The dollar currently trades around 0.845 to the Euro compared to its 0.92 figure against the currency, losing 8% in the space of seven months.