Americans Stand to Gain $4,500 If They Reinvest Stimulus Checks in Bitcoin

An average American taxpayer received three rounds of stimulus checks from the U.S. government as a means of reviving the economy by boosting spending potential for consumers. For some, it means an opportunity to invest in bitcoin.

An Aug. 26 report by Cointelegraph revealed that 11 percent of respondents between the ages of 18 and 34 reinvested some of their stimulus checks in cryptocurrencies. Starting in April 2020, adult Americans who reinvested the first round of stimulus payments into Bitcoin realized a net profit of approximately 442%, turning a $1,200 investment into $5,304 as of October 31, 2021.

The second $600 stimulus check was issued between December 2020 and January 2021, just two months before Bitcoin reached its first all-time high of $65,320. If reinvested in Bitcoin, the second check would return a 152% profit (~$312).

The average payment of the third stimulus check is $1,400 and will be issued to eligible taxpayers starting in March 2021. Since then, Bitcoin has experienced a three-month bear market, but has since fully recovered, with transaction values exceeding $65,000 for the first time. Despite the volatility, at the time of writing, reinvesting the third stimulus check in Bitcoin would have yielded a 7% return ($98 profit).

Based on the above findings, timely reinvestment of $3,200 worth of stimulus checks into Bitcoin would have resulted in a total profit of $4,514 (nearly 141%) by the end of October. In a study conducted by Harris Poll on behalf of Yahoo Finance, the majority of Americans willing to invest in cryptocurrencies said their interest was primarily in bitcoin and ethereum.

Cryptocurrency analyst PlanB’s prediction for Bitcoin has been validated for the third month in a row.

August > 47,000✅

September> 43,000✅

Next target: October > 63,000, November > 98,000, December > 135,000

— PlanB (@100trillionUSD) October 1, 2021

According to PlanB, the value of Bitcoin will exceed $98,000 by the end of November. If the forecast holds, the stimulus check investment would realize a further 58% profit from today's market price.

On Sept. 7, El Salvador declared Bitcoin legal tender and began using its U.S. dollar reserves to purchase Bitcoin.

On October 28, President Nayib Bukele announced that he would increase his holdings by 420 bitcoins, bringing the national reserve to 1,120, worth $87.4 million.

Long wait, but worth it.

We just bought the dip!

420 new bitcoins

— Nayib Bukele (@nayibbukele) October 27, 2021

According to Bukele, once El Salvador has made a profit from its bitcoin investment, it reinvests an equivalent amount of dollars from its dollar reserves to fund various programs. Thus, the total value of El Salvador's national reserves has remained at its original value in US dollars.

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.