The average American taxpayer received three rounds of stimulus checks from the US government as a way to stimulate the economy by increasing consumption potential. For some, this has meant the opportunity to invest in Bitcoin (BTC).
A Cointelegraph report released on August 26 shows that 11% of respondents between the ages of 18 and 34 have reinvested some of their stimulus checks in cryptocurrency. US adults who reinvested their first round of stimulus payments since April 2020 in bitcoin have generated a net profit of about 442%, turning an investment of $1,200 into $5,304 as of October 31, 2021.
A second incentive check for $600 was issued between December 2020 and January 2021, just two months before bitcoin hit a record high of $65,320 for the first time. When reinvesting in bitcoin, the second check will yield a profit of 152% (about $312).
The average return for the third stimulus review has been set at $1,400, which has been available to eligible taxpayers since March 2021. Since then, Bitcoin has experienced a three-month bear market, but has fully recovered, topping $65,000 in turnover for the first time. Despite the hesitation, reinvesting a third stimulus check in Bitcoin would generate 7%, or $98 in return at the time of writing.
Based on the above results, a timely reinvestment of the $3,200 stimulus check in Bitcoin will yield a total return of $4,514 (nearly 141%) by the end of October. In a study conducted by Harris Poll on behalf of Yahoo Finance, most Americans who want to invest in cryptocurrency indicated a primary interest in Bitcoin and Ether (ETH).
Cryptanalyst PlanB’s Bitcoin prediction confirmed for the third consecutive month.
According to PlanB, Bitcoin will be worth over $98,000 by the end of November. If the forecast is correct, the investment in the stimulus test will generate an excess return of 58% over the current market price.
Related: El Salvador Buys 420 Hotter Bitcoin
El Salvador declared Bitcoin as legal tender on September 7 and has since started reinvesting its dollar holdings in buying Bitcoin.
President Neb Pöckel announced the addition of 420 bitcoins on October 28, bringing the national reserve to 1,120 bitcoins, valued at $87.4 million.
Bukele said that when a country earns money from its bitcoin investment, a similar amount of dollar reserves are reinvested to fund various initiatives. As a result, the total value of El Salvador’s national reserves remained unchanged in US dollars.