Turn US$10,000 into US$1,200: It’s possible with a Bitcoin investment
US citizens who invested their first April 2020 aid payment in Bitcoin have now turned it into US$10,000.
The Twitter account „$1200 Stimulus Is Now Worth“ tracks how much the first US aid payment, which amounted to US$1,200, would be worth if invested in Bitcoin. US citizens received the Crypto Engine review payment from 15 April 2020.
The passage of the first US$1,200 Corona aid package in April last year coincided with a strong bull run in the cryptocurrency and stock markets.
Bitcoin was at US$6,848 on 15 April. If you had invested that US$1,200, it would now be worth US$10,211, assuming today’s prices of around US$56,000. The return on investment is 751 per cent.
You’d have over $10,000 if you bought #bitcoin with your stimulus check
Check https://t.co/jckMs158A2 for live updates. pic.twitter.com/TXp2HnOpEc
– $1200 Stimulus Is Now Worth (@BitcoinStimulus) March 10, 2021
And if you missed investing the first aid cheque in Bitcoin, the second one of $600 from the end of December would still have brought a decent return as well. If you had bought Bitcoin on 1 January at a price of around US$29,000, that US$600 investment would now be worth around US$1,160. That’s a return of 93 per cent.
A third bailout is planned because on 6 March the US Senate waved through a US$1.9 trillion stimulus package. US dollars on 6 March. In the process, 1,400 US dollars are to be paid out to every American citizen.
To achieve the same return with the third aid payment, there would have to be a very sharp rise in the bitcoin price. To achieve a 751 per cent return again, the bitcoin price would have to rise to 476,000 US dollars. To achieve a 93 per cent return, bitcoin would have to rise to US$108,000.
In the short term, many institutions believe a Bitcoin price of over 100,000 US dollars in 2021 is feasible. Earlier this year, Nikolaos Panigirtzoglou, a strategist at JPMorgan Chase, claimed that US$146,000 or more is possible for Bitcoin by the end of 2021. He believes Bitcoin will overtake gold as a hedge and long-term store of value.
According to a July 2020 survey by Grayscale Investments, the Corona pandemic has increased investor interest in Bitcoin. The firm surveyed 1000 investors aged 25-64 who had private investments of US$10,000 or more.
The survey found that the pandemic had influenced the decisions of 63 per cent of respondents who had invested in Bitcoin in the past four months.
Had they invested the first aid payment of 15 April in Ethereum, they would have made an even better return than with Bitcoin. With 7.5 Ether, which one could buy with the 1,200 US dollars at that time, the investment would now be worth 13,500 US dollars and 1025 percent more.