For residents of many countries, the Covid-19 shutdown caused financial hardships and stress. Many governments (in this case we will focus on the U.S.) issued stimulus checks to families to help them put a dent in their expenses. For many Americans, the stimulus check was used to put food on their table, gas in their vehicles any many other staples, as money is tight during the pandemic.
However, many were tempted to put their stimulus check directly into Bitcoin. While we never give financial advice and would never tell another person where to put their stimulus check, it’s a fun thought experiment to see what that $1,200 stimulus check would be worth today if it was immediately put into Bitcoin upon receipt.
The first stimulus check was dispatched in April of 2020 and Bitcoin was worth just shy of $9,000 at the time. Had an individual decided to put that $1,200 stimulus check directly into Bitcoin in April of 2020, they would currently have about $10k USD and be up over 700%!
(photo by: DonkeyHotey - Satoshi Nakamoto was added)
Now, while we never give out financial advice, there are plenty that do. Take Robert Kiyosaki for example, you know the "Rich Dad Poor Dad" guy. Yea, he's never been afraid to dish out financial advice and while we take anything these guys with a grain of salt, he did have some interesting commentary on Bitcoin and the stimulus checks.
In March 2021 he Tweeted out some critical feedback about the potential implications of "free money" stimulus checks. That portion of his tweet was met with some definite criticism, however he ended his Tweet with some support for Bitcoin.
Do we smell a new book coming? Rich Dad, Crypto Dad?
One of the most liked Tweets after the $600 stimulus check, came from Gemini co-owner and Bitcoin superstar Cameron Winklevoss.
The implication of the Tweet was, that much of the stimulus money would flow into the cryptocurrency markets. Cameron was right on the money(heh'), as Yahoo Finance's poll showed that 7% of people expecting to get a stimulus check in America planned to buy cryptocurrencies such as Bitcoin.
While the above tweet is satire, how nice would it be if the stimulus money come come directly into your Bitcoin wallet?
The first step will be getting the IRS to accept tax payments in virtual currencies..one thing at a time.
Ten years from now we may look back at these tweets and wonder what the joke is..
Articles about Bitcoin price typically don't age well. With the large price swings and movements in cryptocurrency, any article written about price is dated the second we hit submit.
If you are interested in keeping track of what the stimulus check would be worth at any time, we suggest checking out the Twitter handle @BitcoinStimulus for daily updates.