A battle is waging for the second stimulus in America. Despite President Donald Trump signing off on the bill and the House quickly approving $2,000 checks for each qualifying American, the bill is still facing a lot of barricades in the Senate, which believes that most of the country is not in dire need of the money.
What a Ride This Stimulus Train Has Led Us On!
While this fight will more than likely continue into the new year, we have an opportunity right now to direct our thoughts to the first stimulus money that was initially agreed upon in late March. Checks were later handed out in the following months of April and May. Each qualifying stimulus receiver would be entitled to a check worth $1,200.
There was widespread speculation that a lot of this money was invested in bitcoin and assorted forms of crypto. Digital exchanges such as Coinbase reported that they were seeing a lot of transactions worth $1,200 or somewhere around that sum. Those who invested their funds in BTC are likely quite happy about this decision considering how much bitcoin has risen in the last seven months alone.
At the time, bitcoin was worth around $9,000 per unit. Today, it is worth around $27,000 per unit, meaning it has grown three times its size in less than a year. That’s massive expansion for what was once a purely speculative coin that everyone worried about due to its volatility and lack of standing in the modern financial world.
However, bitcoin analyst Jason Deane says that things have really turned around for the world’s most popular digital currency by market cap. He says that various Twitter accounts have been tracking the coin’s progress over the past eight months, and those who used their stimulus money to invest in BTC have likely added around $4,000 to their overall net worth. That $1,200 they received in May is probably worth around $5,000 now.
There will almost certainly be people receiving those checks who will have seen the continuous growth of the equivalent in bitcoin via Twitter accounts such as ‘$1,200 stimulus is now worth’ and want, naturally, to be a part of it.
However, while he acknowledges that bitcoin has come a long way in a relatively short period, he also says that investing all of one’s funds into bitcoin would be a serious mistake, as the currency is still not widely used enough or stable enough to warrant full investing power.
Keeping the Money Where It Belongs?
The U.S. economy has continued to struggle through the effects of the pandemic and the reality is that although Wall Street has benefited from economic stimulus, Main Street arguably has not. Our view is that – for some people at least – although the desire to invest may well be higher, the ability to do so may actually be lower.