Americans who received $1,200 from the government as a result of the pandemic and invested in Bitcoin have multiplied their money about 10 times since then. Those who have invested their two other aids are also in profit.
The introduction of more dollars into circulation has caused the dollar to accelerate its loss of purchasing power as the US is currently facing one of its biggest periods of inflation.
Because of this, Bitcoin was a wise choice for those who converted their dollars to Bitcoin and didn’t spend it. Just like Bitcoin remains a great choice today.
Bitcoin valued a lot
With the economy affected by the pandemic and actions of social isolation taken by the government, several countries started to provide financial aid to their citizens.
In the US, this aid began on April 15, 2020, where an amount of $1,200 was sent to Americans who met the terms of the government’s program.
At the time, Bitcoin was trading for $6,600 and today, after a year and a half, it is worth $62,500. That is, the people who used this money to buy bitcoin now have $11,300, a return of almost ten times.
In December 2020, the US government made new shipments, this time for $600 when Bitcoin was worth $7,385. And the third, $1,400, took place on March 16 of this year, when Bitcoin was at $56,908.
Putting together the three grants, totaling $3,200, these Americans who used the money to buy Bitcoin have more than $14,200 worth of Bitcoin in their pockets, an increase of 443%.
As pointed out by Cryptoreportage in the week of the first aid, several people have adopted this attitude and if they haven’t spent their bitcoins, they are doing very well.
Although many sectors suffered from the onset of the pandemic, including Bitcoin, the world’s largest cryptocurrency proved to be a very strong asset in times of crisis, contrary to what some skeptics had expected.
As the government put more money into circulation, the price of its currency accelerated the loss of its purchasing power. Turning dollar into bitcoin was a better-than-expected choice, as the currency appreciated strongly this past year due to various factors such as the entry of large institutions and El Salvador’s adoption of the currency.