A battle is underway for the second stimulus in America. Although President Donald Trump approved the bill and the House quickly approved checks for $ 2,000 for every eligible American, the bill still faces numerous barricades in the Senate, which estimates that most of the country is not in dire need of money.
What a race this stimulus train brought us!
While that fight will more than likely continue into the New Year, we currently have the opportunity to direct our thoughts to the first stimulus funding initially agreed to at the end of March. The checks were then distributed in the following April and May. Each eligible stimulus receptor would be entitled to a check valued at $ 1,200.
There was widespread speculation that much of this money was invested in bitcoin and various forms of crypto. Digital exchanges such as Coinbase have reported that they are seeing a lot of transactions worth $ 1,200 or somewhere around that amount. Those who have invested their funds in BTC are probably very happy with the move, given the rise in bitcoin in just the last seven months.
Back then, bitcoin was worth around $ 9,000 per unit. Today, it’s worth around $ 27,000 per unit, which means it’s grown to three times its size in less than a year. It’s a massive expansion for what was once a purely speculative coin that everyone worried about due to its volatility and lack of room in the modern financial world.
However, Bitcoin analyst Jason Deane says things have really changed for the world’s most popular digital currency by market cap. He says various Twitter accounts have been following 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. The $ 1,200 they received in May is probably worth about $ 5,000 now.
There will almost certainly be people receiving these checks who have seen the continued growth of the bitcoin equivalent through Twitter accounts like “ $ 1,200 in raise is worth now ” and naturally want to be a part of it.
However, while acknowledging that bitcoin has come a long way in a relatively short period of time, he also says investing all of his funds in bitcoin would be a big mistake, as the currency is still not being used enough or stable enough to fully justify investment power.
Keep the money where it belongs?
The US economy has continued to struggle with the effects of the pandemic and the reality is that while Wall Street has benefited from the economic recovery, Main Street arguably has not. We believe that – at least for some people – while the desire to invest may be greater, the ability to do so may in fact be less.