The $1,200 Stimulus Check: Now a Worthwhile Investment in Bitcoin
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Understanding the Stimulus Impact on Bitcoin
In April 2020, the initial COVID stimulus checks were distributed, each providing $1,200 to individuals. If that money had been invested in Bitcoin, its value would have soared to approximately $11,200 today. Since the lows observed in March 2020, Bitcoin has experienced remarkable growth, with its price surpassing $60,000 as of this writing. It appears that Bitcoin might be entering a "supercycle," characterized by a lack of the typical downturns seen in the later stages of crypto market cycles.
The Role of Stimulus in Bitcoin's Growth
Ongoing stimulus measures and a steadfast commitment to quantitative easing have reinforced Bitcoin's appeal as a store of value. As the world increasingly focuses on Bitcoin, institutional investment has emerged as a critical factor, especially in light of the pandemic and economic relief efforts. Notable public companies, including MicroStrategy, Square, and Tesla, have begun to integrate Bitcoin into their financial strategies. Additionally, traditional firms like MassMutual and New York Life are also gaining exposure to Bitcoin, whether directly or indirectly.
Eligibility for Stimulus Payments
Initially, individuals with a modified adjusted gross income below $75,000 and couples earning under $150,000 qualified for these stimulus checks. While the eligibility criteria—and even the U.S. presidency—have evolved, the release of stimulus funds continues.
Are We Entering a Bitcoin Supercycle?
Dan Held posits that Bitcoin could reach a staggering $1 million. Should that original stimulus check have been invested in Bitcoin? The clear answer is yes, assuming one was tuned into the cryptocurrency market. Although it may have been hard to foresee Bitcoin's steep rise, the indicators of its long-term potential were evident since its inception by Satoshi Nakamoto.
The Future of Bitcoin Adoption
As outlandish as it sounds, we are still in the early stages of Bitcoin and cryptocurrency adoption. While many mainstream institutions are beginning to embrace Bitcoin, numerous others remain hesitant, although interest is growing. Major players like Oracle, Amazon, Apple, and MasterCard are expected to join the fray, with central banks likely to follow suit.
Bitcoin's Role in Financial Strategy
Eventually, Bitcoin will be recognized as a hedge against inflation, if not as "digital gold," and it may emerge as a leading option for store of value and energy among available investment assets. The cryptocurrency is well-positioned to maintain its upward trajectory towards unprecedented valuations. The recent milestone of a $1 trillion market capitalization is merely the beginning of Bitcoin's journey.
Looking Ahead
While hindsight may provide clarity, it will be intriguing to see the value of that $1,200 stimulus check in the future—be it one year, five years, or even longer. Thank you for reading! Please note that I do not offer investment or financial advice; all opinions expressed are solely my own. For more insights like this, consider subscribing to my weekly newsletter.