Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.
The third stimulus bill is set for signing in the next few days. Here is how investors can take full advantage of their stimulus checks.
The record $1.9T relief bill with stimulus checks presupposed is headed to President Biden‘s desk after passing the US House. Economists expect new money to trigger temporary inflation in the short term. Especially with the economy opening up, inflation is almost guaranteed. How can smart money ensure it comes out on top?
Stimulus Checks Performance
Cryptocurrencies, especially Bitcoin, have proven to be great hedges against inflation. The first two stimulus checks make it evident that not only is Bitcoin a great hedge against the dollar but also a great store of value. An account on Twitter has been tracking how the first and second stimulus checks have been performing if invested in Bitcoin. The first check was for $1,200 and was sent out on April, 15th 2020. At the time, Bitcoin was trading just below $7,000. In less than a year, Bitcoin has come from this to reach a high of $58,000 and at the time of press is sitting above $56,000. This represents a gain of 722% with the check now worth around $10,000.
You’d have over $10,000 if you bought #bitcoin with your stimulus check.
— $1200 Stimulus Is Now Worth (@BitcoinStimulus) March 10, 2021
The second stimulus check of $600 was sent out in late December. At the time, Bitcoin was exchanging for just under $30,000. Since, Bitcoin has nearly doubled, reaching a high of $58K. This means the $600 would now be worth just under $1,200, a near 100% gain.
The second-largest cryptocurrency is no different. In fact, with the first stimulus check, investors would have gained more with Ethereum than Bitcoin. When the checks were sent, Ethereum was exchanging for $158. Since the asset has climbed as high as $2,000 and at the time of writing this, is trading for $1,800.In that time, the coin has gained as much as 1,000%.
Bitcoin $100K Target
The third check is record-breaking with recipients receiving $1,400. Most in the crypto community are urging investors to use the money to buy Bitcoin. And what can they expect? If the same pattern is observed, Bitcoin at $100,000 would be conservative. If Bitcoin records the same percentage as seen in the first check, prices are set to top $470,000. Conservatively, if it only rallies by as much as the second cheque, it will reach as high as $108,000. All of which could happen before the end of the year or early next year.
One of the key motivators for investors will be FOMO (Fear of Missing Out). Bitcoin’s 2021 performance has attracted the masses and top influential individuals and institutions. If prices begin to accelerate upwards again, retailers will flock pushing it even higher. Top analysts including Anthony Pompliano, PlanB and Hong Fang, CEO of OKCoin, have made $100K price predictions by the end of the year. Their predictions are well in line with the price trend.