Cryptocurrencies

The best investment in history? The $ 1,200 stimulus check converted to Bitcoin (BTC)

The situation of the American economy is still at its lowest. The coronavirus pandemic is far from being under control in the United States, which leaves total uncertainty over the economic recovery. Millions of Americans are still out of work. Under these conditions, a new stimulus check should be sent to eligible American citizens. This is an opportunity to reconsider the choice made by many American citizens in March to exchange their first stimulus check for … Bitcoin.


The American blank check

At the end of the month of March 2020, the US government and Congress agreed on a first stimulus package including a stimulus check from $ 1,200 for all eligible US citizens.

The incredible speed of spread of the coronavirus pandemic had caused a shock not seen for decades on the world economy.

This stimulus check was therefore intended to help the millions of American citizens who had suddenly found themselves without a job. If I had wanted to be cynical I would have told you that this $ 1,200 stimulus check was also meant to calm the people.

Indeed, while the population had to be content with a few crumbs, the majority of the recovery plan went to large companies. The US federal government then responded to a very large number of bailout requests.

Many Americans chose to immediately exchange this $ 1,200 for Bitcoin

After receiving this stimulus check from $ 1,200, many American citizens have made a bold choice: they immediately decided to exchange those $ 1,200 fallen from the sky for Bitcoin.

At that time, the third Bitcoin Halving was approaching, and more and more people were wondering if trying the Bitcoin experiment was not a good idea against a US dollar whose money the Fed kept increasing in circulation.

It must be said that at the same time the Fed had started its unlimited quantitative easing program which would see it print more than 3,000 billion dollars in a few weeks.

Faced with an upcoming monetary devaluation of the US dollar, many have therefore chosen to buy Bitcoin.

A first wave of stimulus checks reached millions of American citizens around the April 21, 2020. At the time, the price of Bitcoin was rising from the low of $ 3,800 which had been affected during the liquidity crisis of March 2020.

Those who traded their stimulus check were able to get 0.175 Bitcoin

A Bitcoin was then worth $ 6,850. Those who immediately redeemed their stimulus check from $ 1,200 against Bitcoin were therefore able to obtain 0.175 BTC.

It’s hard to get exact figures on how many American citizens have done this. The only thing that is certain is that cryptocurrency exchanges had seen a significant increase in deposits back then. $ 1,200.

Brian Armstrong, the CEO of Coinbase, himself confirmed this via a tweet at the time:

Tweet from Brian Armstrong confirming deposit increase of $ 1,200

A Binance US spokesperson also confirmed that the other major exchange has seen a spike in deposits exactly $ 1,200 at the same period:

“It looks like people have deposited exactly $ 1,200 on Binance US in the past two days.”

Binance US

Once this purchase of $ 1,200 in Bitcoin made, many American citizens have decided to become Bitcoin HODLers.

It was their best option since this money was falling from the sky. They could afford to put it aside and just wait to see what was going to happen.

These people probably did not know at the time, but if HODLing Bitcoin is the simplest strategy, it is also the best strategy to follow in the world of Bitcoin. I follow this strategy, and the majority of Bitcoiners too.

This Bitcoin amount is over $ 2,000 today

Since April 21, 2020, the price of Bitcoin has continued to rise to now reach a price around $ 12K. The August 18, 2020, the price of Bitcoin has even exceeded $ 12,300.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

However, as of this writing, the price of Bitcoin has fallen back to around $ 11,700. I will therefore use this price for the rest of my reasoning. Knowing that the price of Bitcoin is set to increase very sharply in the coming months, the demonstration that will follow will only be reinforced.

With 0.175 BTC in their possession, these American citizens now have the equivalent of $ 2,050.

Without any effort, other than believing in the Bitcoin revolution, Joe, a daring American citizen, transformed $ 1,200 fallen from the sky in $ 2,050. This represents an increase of + 70% of its initial investment.

What is most interesting to me is that the prospects for these American citizens are immense in the months and years to come.

A Bull Run Is About To Begin In The Bitcoin World. It will be different from the previous ones and better. I take a bet: by the end of the year 2021, the price of Bitcoin will increase very sharply to reach a price between $ 50K and $ 100K.

I purposely choose a wide price range here.

This choice will become the best investment in history in the years to come

With Bitcoin at $ 50,000 at the end of 2021, Joe would then have in his possession the equivalent of $ 8,750, a performance of + 630% in less than 2 years.

If Bitcoin hits $ 100,000 at the end of this bull market, as many Bitcoiners believe, Joe would then have the equivalent of $ 17,500, i.e. a performance of + 1.360%.

I will stop here on the assumptions, but I think you have understood the incredible potential of 0.175 BTC that Joe was able to acquire by exchanging his stimulus check from $ 1,200 against Bitcoin.

Just imagine what will become of the $ 1,200 from Joe in 10 years if Bitcoin reaches the price of a million dollars after the next two Halvings around 2024 and 2028.

Keeping that money in US dollars didn’t make sense

While no one can predict what the price of bitcoin will be in the future, and whether it will fully realize its incredible potential, I can already tell you for sure what would have happened to the $ 1,200 of Joe if he had decided to keep them in US dollars.

For that, I just have to look at the evolution of a purchasing power of $ 1,200 Between 2010 and 2020 :

Evolution of a purchasing power of $ 1,200 from 2010 to 2020

Between 2010 and 2020, a purchasing power of $ 1,200 lost 17% of its value. In 2020, these $ 1,200 were only worth $ 997.

With the terrible devaluation of the US dollar that the current monetary policy of the Fed will cause, you are entitled to think that over the next ten years these $ 1,200 obtained thanks to the stimulus check will be worth much less than $ 997.

To stay for a shorter period, at the end of 2021, this purchasing power of $ 1,200 might be worth just over $ 1,100. At that time, the 0.175 BTC of Joe could be worth well over $ 10,000.

Conclusion

In life, I basically believe that there are two categories of people: those who play to avoid losing, and those who play to win.

American citizens who exchange their $ 1,200 stimulus check for Bitcoin are part of this desire to play to win. This simple exchange of an infinite amount of US dollars for Bitcoin, which is absolutely scarce, will become the best investment ever made in history.

It will also demonstrate the willingness of Joe and many other American citizens to withdraw from the current monetary and financial system.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

The flaws in this system have become so obvious that many can no longer afford to wait for the system to change. They must take action, and the only credible alternative right now is Bitcoin. See you in a few years to check it all out. By then, Joe will be considered a genius, I’m sure.

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