First US Covid Stimulus ($1,200) Quadrupled If Invested In Bitcoin
Last Updated on 23 March 2021 by CryptoTips.eu
One of the trending articles on Reddit’s crypto discussion forum yesterday was the fact that if Americans had invested their first stimulus check of $1,200 in Bitcoin, they would now have some $6,400 in hand.
The Reddit poster who started the discussion said:
If the recipient of a U.S. stimulus payment in April invested the check into Bitcoin, the check would now be worth $6,495. Since April, in merely nine months, the price of Bitcoin has rallied 441%, posting one of its strongest rallies in recent history.
New stimulus
At the time, Coinbase CEO Brian Armstrong had declared already that many of the investment amounts which were going into Bitcoin at the time were for that amount exactly. Given that a new stimulus check is now underway and with many Americans hoping for more checks in the future from the Biden administration, could Bitcoin be up for a massive stimulus investment?
Deflation hedge
Just like Wall Street tycoons, ordinary Americans are also looking for ways to protect them from inflation. Already in 2020, the US dollar lost out in value against the European Euro and the Chinese Renmibi (of which the Beijing government is now also promoting a digitalized version, known as the Digital Yuan) and expectations are that this trend will only continue in 2021.
The $1200 U.S. stimulus payment invested in Bitcoin in April is now worth $6,495 from CryptoCurrency
Because of this, a crypto fan set up the Twitter account $1,200 Stimulus Is Now Worth last year, which automatically posts what the first US stimulus check would now be worth. By now it’s up to some $6,400.
Due to the hype that this first account has created, and knowing that a second stimulus check was underway, a Twitter account holder set up another similar automated tweet, which showed how much the second stimulus check, for only $600 that was sent out round Christmas was now worth.
Over there we were up to $700 by beginning of January.
The $600 Stimulus Check is Now Worth:
— BitcoinStimulus.net (@StatsBTC) January 13, 2021
$776 (+29%)#bitcoin
There was also a warning from commenters on Reddit though, with one claiming that the US was treading dangerously close to hyperinflation if it continued down this road. He stated:
This cannot go on forever and is reminiscent of Weimar Republic style hyperinflation. The Shiller P/E ratio is currently higher than the crash in the 1930’s, the 2008 recession, black Monday, as well as very close to that of the dot com bubble crash. Please tell me how investing into a completely controlled and manipulated system, with no underlying production growth is not a gamble?
If that is true and the Biden administration would indeed go full stimulus and thus risk hyperinflation, the built-in safety of having only 21 million Bitcoins available will become a very likened good indeed.
peshkova / Depositphotos.com