Anyone who used their first stimulus check to buy Bitcoin is currently up roughly 60%...

Donald Trump hinted today that the next stimulus payments may be even bigger than the last.

And that is probably very good news for bitcoin and crypto.

Coinbase and Gemini both reported a surge in deposits (and purchases) on their exchanges of exactly $1,200 during the month that the vast majority of checks went out.

Coinbase reported over a 400% surge in such deposits.

And now, Donald Trump is hinting that people may get more than the $1,200 they got the last time...

Check it out:

"It may go higher than that actually. I'd like to see it be very high because I love the people. I want the people to get it."

(Source: https://www.foxbusiness.com/money/trump-hints-second-stimulus-check-could-be-bigger-than-1200)

This was said during an interview with ABC on Wednesday evening. Who knows if this was all just political talk to make the people think that Donald is fighting for them while the evil congress are the ones who are preventing the people from getting it.

Investing it in crypto worked the last time...

It isn't clear exactly how large this next check will be, though I have my doubts it will be much larger than the $1,200 Americans got last time, but anyone who invested that money into bitcoin effectively got a much larger stimulus check.

Based on the price of bitcoin being around $7k when the majority of the checks were issued, anyone who put that money into bitcoin is looking at roughly a 60% gain, which puts the de facto stimulus amount received at around $1,900 now.

A gain of roughly $700 on that $1,200 invested.

Keep in mind that some families got several checks for spouses and dependents, which means the actual amount invested and returned could be even higher had that money gone into bitcoin.

The maximum amount any one family could have received was $3,900.

If all that money had been invested in bitcoin, it would now be worth roughly $6k.

Now that is a nice little chunk of stimulus!

(Source: https://www.forbes.com/sites/benjaminpirus/2020/06/13/kraken-explains-impact-if-all-300-billion-in-stimulus-checks-was-invested-in-bitcoin/#834cccb2f130)

What would happen if all the stimulus money was invested in Bitcoin?

During the last round of stimulus payments, the amount set aside was $300 billion.

According to research done by Dan Held at Kraken, if all that money made its way into the $200 billion bitcoin market, we would see bitcoin go over $2 trillion in total value.

Which, if anyone is doing the math, that would also take bitcoin over $100k.

The reason being is that even though the total market cap is valued at roughly $200 billion, very few of that amount actually wants (or is able) to sell.

Which means, only "a few" sellers against $300 billion of inflows would send the price to the moon.

Given this back drop and how well it has worked for people the last time, plus the fact that this next round of checks may be even bigger than the last one, bitcoin may end up reaching $100k a lot sooner than most people expected. :)

Stay informed my friends.

Image Source:

https://www.foxbusiness.com/money/trump-hints-second-stimulus-check-could-be-bigger-than-1200

-Doc

Posted Using LeoFinance