In March 2020, the US government imposed various lockdown restrictions that brought the economy to a halt. This was in response to the deadly coronavirus that was spreading at an alarming rate in the country. The devastating impact on the economy prompted President Donald Trump to sign into law the CARES Act giving out a stimulus check.
This relief plan saw $1200 payments made to every American earning under the set gross income. Singles earning a gross income of $75,000 or $150,000 for married couples were eligible for this fund. This meant a majority of Americans fell under this category.
While this is a compassionate act, experts believe it will escalate the already out-of-control inflation problem. The CARES Act introduced an additional 2.2 trillion dollars into the economy, prompting more money to be printed. According to experts, printing more money decreases its marginal utility. This results in inflation and the weakening of the American currency. At that time, the American dollar lost significant value, hitting a record low in 14 years.
Printing money doesn’t fix the problem. In fact, it does nothing to stabilize the economy in the long term. Instead, it slows down the structure and becomes a slow form of taxation. This policy thrives on your time and efforts.
Investing your Stimulus Check in Bitcoin
If you had invested your $1200 stimulus check in Bitcoin, it would now be worth $11,000. This is a clear indicator that the value of your stimulus check would have appreciated if you chose to invest in cryptocurrency.
The increase in value doesn’t come as a surprise because, unlike the dollar, the supply of Bitcoin is ultimately fixed. Bitcoin has been historically purchased and adopted at a rate that exceeds its transparent and scheduled inflation. This is a clear indicator that Bitcoin is an excellent way for creating and maintain wealth. So, the next time you get a stimulus check, think of investing it in crypto!
Generally, the negative impacts of inflation are felt by bankers and those working in high government positions. Similarly, an average American will also feel the effects of inflation in their day-to-day spending.
While the pandemic could have dwarfed your income and left you with no option but spend the $1200 stimulus check, you can’t account for it several months later.
Instead of appreciating, the stimulus check could only depreciate. This is mainly due to inflation. The injection of more trillions into the economy meant that everyone had something in their pocket. This increases the price of products and services. While natural occurrences control the standard currency, the value of Bitcoin isn’t easily influenced. This is why your $1200 could have increased in value had you invested in Bitcoin!
Bottom Line
Investing in Bitcoin comes with a wide range of benefits. While it is not a guarantee that you will walk out with lucrative profits, the chances of making losses are minimal. This is why you should think of investing in the world’s leading cryptocurrency.