Americans Gamble on Bitcoin with Coronavirus Stimulus Checks

This year’s coronavirus pandemic has seen millions of people around the world get diagnosed and millions more lose their jobs. One of the solutions to stimulating the economy during these difficult times as usual includes a variety of stimulus packages presented by Donald Trump’s government totaling in the trillions of dollars small, medium and large businesses.

In mid-April, every lower and middle income American received a $1,200 stimulus check, and it appears many of those people have decided that now is as good a time as any to gamble on Bitcoin. How would anybody know that? It turns out it’s not rocket science.

Brian Armstrong, the CEO of Coinbase.com, posted a tweet explaining that a high percentage of recent deposits on the website intended for the purposes of purchasing Bitcoin where for exactly $1,200. It doesn’t take a math wizard or financial forensics investigator to find the coincidence in that.

How Well Did Stimulus Gamblers Fare?

At the time that those struggling in receiving the above $1,200 stimulus checks were trading them in for a little bit of Bitcoin, the price of BTC was sitting at $6,600. It’s now hovering at $9,000 USD at the time of this writing. That means those willing to take a chance in the short term are already up close to 40% on their money. That’s a pretty big win. Especially during a time when many Americans are struggling not just with the idea of not having work, but with the idea of having to sit at home and stay in isolation.

Tracking the Bitcoin Price for Stimulus Investors

Believe it or not, there is actually a whole Twitter account devoted to tracking the price gains of those who used their stimulus check to invest in Bitcoin. The government might’ve positioned those checks as an opportunity for many struggling to pay their bills while this whole pandemic thing blows over, but obviously some people had a penchant for taking on a greater risk to try to make some profit. Investors are sitting pretty right now that’s for sure.

Other Things to Gamble on with Stimulus Checks

For those that find it less than flattering that low and middle income Americans would gamble with their stimulus checks, not to worry, not everybody receiving the money invested in Bitcoin. Truth be told however, it’s tough to call the other purchasing decisions people made with stimulus checks investments per se. Other popular buys included video games, cannabis and sneakers.

It turns out that less than 10% of the money issued to citizens by the American government went towards groceries, and even with restaurant and food deliveries included, that number only gets bumped up to 16%. Aside from digital currency investments and the aforementioned purchases above, the rest of the money clearly went to staples like rent, car payments, utilities etc.

Is The Stimulus Gamble Going to Keep Paying Off This Year?

While the current Bitcoin price is sitting pretty at around $9,000, making stimulus investors a hefty profit. The price has cooled off a little bit in the last couple of weeks as it’s down from reaching nearly $11,000 recently. Whether or not the price continues to rise and fall depends on a number of factors but long-term, the halving event that reduced the number of Bitcoins rewarded per block mined cut down from 12.5 BTC to 6.25 BTC. It means a significantly reduced supply of new bitcoins hitting the market and that in theory should lead to long-term price gains for dedicated investors who want to see through the many ups and downs that come with putting money into cryptocurrency. It’s a roller coaster ride whether that ride is paid for with stimulus checks or not.

Arthur Crowson

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