Stimulus money in the pandemic has been a major factor behind the current boom in stocks and cryptocurrencies.
In 2020, the Coronavirus
Aid, Relief and Economic Act provided payments of $1,200 for eligible adults and another $500 for those with qualifying children.
The CARES Act was the first of three rounds of stimulus payments for Americans since March 2020.
The Tax Relief Act of 2020 in December declared additional payments of $600 per eligible adult and up to $600 for those with qualifying children.
The American Rescue Plan Act of 2021 last month provided an additional $1,400 payment to eligible adults and up to $1,400 for those with qualifying children.
Some consumers used the stimulus payments to help with increased expenses or lower income due to the pandemic. Others saved the money or invested it.
Here is a look at the return a consumer would have had if they put their stimulus checks into leading cryptocurrencies like Bitcoin, Dogecoin and Ethereum on the dates of April 11, 2020; December 29, 2020; and March 12, 2021.
The calculations are based on the stimulus payments of $1,200, $600 and $1,400 for eligible adults by using the highest price each cryptocurrency traded for on the dates Americans began receiving checks.
Stimulus Check In Bitcoin: Investing in Bitcoin (CRYPTO: BTC) with a portion of stimulus checks may have been a popular option for investors and people looking to store some of the payments from the US government.
Bitcoin traded at $6,926 on April 11, 2020; $27,370 on December 29, 2020; and $57,996 on March 12, 2021. A person who put all $3,200 from the stimulus checks into Bitcoin would have been able to purchase a total of .219 of the cryptocurrency. Based on a price of $55,375.31 for Bitcoin today, that $3,200 would now be worth $12,127.
Stimulus Check in Dogecoin: The meme cryptocurrency known as Dogecoin (CRYPTO: DOGE) has seen its valuation rise sharply in 2021 thanks to strong interest from retail investors and the support of famous people like Tesla Inc (NASDAQ:TSLA) CEO Elon Musk
Dogecoin traded at $0.0020 on April 11, 2020; $0.0046 on December 29, 2020; and $0.0570 on March 12, 2021. A person who put all $3,200 from the stimulus checks into Dogecoin would have been able to purchase 754,996 of the digital tokens. Based on a price of $0.3327 for Dogecoin today, that $3,200 would now be worth $251,187.
Stimulus Check in Ethereum: One of the fastest growing cryptocurrencies in 2021 is Ethereum (CRYPTO: ETH), thanks to its connection to non-fungible tokens.
Ethereum traded at $161.17 on April 11, 2020; $737.95 on December 29, 2020; and $1,839.50 on March 12, 2021. A person who put the $3,200 into Ethereum would have been able to purchase 9.02 of the coins. Based on a price of $2,157.25 for Ethereum today, that $3,200 investment would now be worth $19,458.