A Twitter account named “$1200 Stimulus Is Now Worth” has been tracking how much the first US $1200 stimulus would be worth if you invested in Bitcoin when the funds were sent out from April 15, 2020.
The passing of the first $1200 stimulus bill in April last year corresponded with a huge bull run in the cryptocurrency and stock markets.
Bitcoin was sitting at $6,848 on April 15, and if you had invested the $1200 stimulus then it would now be worth $10,211 at today’s prices of roughly $56,000. The return on investment is 751%
You’d have over $10,000 if you bought #bitcoin with your stimulus check.
Check https://t.co/jckMs158A2 for live updates. pic.twitter.com/TXp2HnOpEc
— $1200 Stimulus Is Now Worth (@BitcoinStimulus) March 10, 2021
And if you’d somehow missed out on investing the first stimulus check into Bitcoin, the second stimulus of $600 rolled out in late December would still have given you a decent return. If you had purchased Bitcoin on Jan. 1 at roughly $29,000, that $600 investment would have now grown to be worth around $1,160 — a 93% return.
A third stimulus is on the way after the U.S senate approved the rollout of a $1.9 trillion relief package on March 6, which will see $1,400 paid out to eligible Americans.
To see the same returns from the third stimulus, you’d need to see a gigantic increase in Bitcoin’s price. If you were looking to repeat a 751% return, Bitcoin’s price would need to reach $476,000. A 93% return on this stimulus would see Bitcoin hit $108,000.
In the short term, many institutions believe Bitcoin moving past $100,000 in 2021 is achievable. Earlier this year in January, Nikolaos Panigirtzoglou from JPMorgan Chase’s strategy team, claimed that $146,000-plus could be possible for Bitcoin by the end of 2021, as he foresees Bitcoin overtaking gold as a hedge and long term store of value for investors.
According to a survey from Grayscale Investments conducted in June-July 2020, COVID-19 has increased investor interest in Bitcoin. The firm surveyed 1000 investors between the ages of 25 and 64 that had personal investments of $10,000 or more.
The poll revealed that the pandemic impacted the decisions of 63% of respondents who invested in Bitcoin during the previous four months.
The sting in the tale is that if you’d invested the first stimulus check into Ethereum on April 15, you would’ve outperformed your Bitcoin counterparts. Investing $1200 in Ethereum at that time would’ve landed you 7.5 Ether, which is worth roughly $13,500 at today’s prices, a 1025% increase.