Nobody said Americans had to spend their COVID-19 stimulus checks on necessities like food, housing and utility bills (though many had no choice). Some have spent part of their stimulus money on investments in Bitcoin — and they’ve turned a tidy profit in the process.
By Vance Cariaga
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An analysis by Cointelegraph found that since the first stimulus check was issued in April 2020, a “timely” investment of $3,200 worth of stimulus money into Bitcoin would have returned a total profit of $4,514 by the end of October 2021 — a gain of about 140%.
As Cointelegraph noted, the average American taxpayer has received three rounds of stimulus checks from the federal government: one beginning in April 2020, the next beginning in December 2020, and the third beginning in March 2021. In the Cointelegraph study, 11% of respondents between the ages of 18 to 34 reinvested a part of their stimulus checks into cryptocurrencies.
Those who invested the first round of stimulus payments into Bitcoin would have realized a net profit of about 442% as of Oct. 31, 2021, by turning a $1,200 investment into $5,304. Investing the second stimulus check of $600 would have netted a profit of about $312, for a 152% gain. The average amount for the third stimulus check, about $1,400, would have returned a more modest $98 profit – a return of 7% – due to Bitcoin’s volatility in recent months.
Cointelegraph arrived at the $4,514 figure by factoring in when average investors might have bought Bitcoin.
Explore: Second Bitcoin-Linked ETF Launches, Aims To Provide ‘Exposure to a Wider Audience of Investors’Learn: Stimulus Money Could Cause the Stock Market to Plunge 15% by November
Last updated: November 1, 2021
