Here's how much you'd have today if you'd invested your stimulus checks into cryptocurrency

Shawn Knight

Posts: 13,527   +132
Staff member
In brief: For the purpose of this discussion, we’re looking at a single individual that received the maximum stimulus payment in each round, or $1,200 + $600 + $1,400 = $3,200, and received them in the first issued waves. We’re also assuming that the recipient didn’t need the money to offset a job loss or increased expenses during the pandemic. Instead, they invested the money into various cryptocurrencies.

The US government in an attempt to curb the economic impact brought about by the Covid-19 pandemic has issued a series of three stimulus checks to date. The first started rolling out in April 2020 to the tune of up to $1,200 for eligible tax-paying adults who earned less than $75,000.

Round two came several months later. Starting in December, eligible recipients received a one-time payment of $600 under the same earnings guidelines as before. Shortly after Biden entered office earlier this year, a third stimulus check was issued, providing eligible taxpayers with up to $1,400.

Using Coindesk, we’ll look back to see what some of the most popular cryptocurrencies were trading at when the checks were released and how much someone could have made through various investments.

First up is Bitcoin. On April 12, 2020, Bitcoin was worth $6,905.48. By December 29, 2020, the price had climbed to $27,371.80, and on March 12, 2021, a single Bitcoin was trading for $57.240.14. Assuming you’d invested each of your three stimulus checks into Bitcoin the moment you received them, your holdings would be worth roughly $9,486 today. Minus the initial $3,200 investment, you’d be left with a profit of $6,286.

Let’s run the same scenario, but with Ethereum this time. On April 12, 2020, Ethereum was trading for $158.76. As of December 29, 2020, the price of Ethereum had jumped to $731.84 per and on March 12, 2021, it was at $1,767.38. Based on today’s price of $3,048.62, your initial $3,200 investment would now be worth roughly $27,957. Subtract the investment and you’re left with a profit of about $24,757. Not bad.

Looking at Litecoin, we see that it was trading at $42.60 on April 11, 2020, $128.80 on December 29, 2020 and $220.69 on March 12, 2021. Had you invested all of your stimmy money into Litecoin and held it, it’d be worth $5,876 today. Subtract the initial $3,200 investment and you’re left with a profit of $2,676.

What about Dogecoin, you ask? A quick check reveals that Dogecoin was going for $0.001979 on April 12, 2020, $0.004421 on December 29, 2020, and $0.055461 on March 12, 2021. Had you invested your full stimulus checks at each of these three intervals and held it, your stash would be worth roughly $156,392 today. Minus the initial investment, that's a solid profit of $153,192.

Image credit Rodnae Productions, Tima

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NicktheWVAHick

Posts: 319   +480
I’m sure some people did just that. I personally know plenty of people who received full payments based on prior years’ tax returns who then in 2020 and 2021 made high-six figure salaries but kept on receiving the stimulus checks. Just proves that socialism only works when EVERYONE is equally poor. But hey, this is where we’re headed anyway.
 

Burty117

Posts: 4,240   +2,290
I'm not sure I see that much difference between lottery tickets and say Dogecoin.
What a confusing comment, they are nothing alike.

I've played the lottery my entire life, not won a penny.

I put £150 into various crypto currency's and made nearly £400.
 

brucek

Posts: 906   +1,312
What a confusing comment, they are nothing alike.

I've played the lottery my entire life, not won a penny.

I put £150 into various crypto currency's and made nearly £400.
The similarity is that neither is predictable or a reliable investment. There are people with the opposite experience as you. You yourself may have an opposite experience the next time you try either. But none of that is really my point... my point was that articles like this one are too easy to write after the fact, and that no one should feel bad they didn't buy this particular lottery ticket nor any other (or worse, be tempted into buying high and then selling at the crash, which happens far too often although people seldom brag about it...)
 

Beerfloat

Posts: 310   +533
You could've also lost your shirt. For instance, by betting on any of the 2000 cryptocurrencies that have failed so far.

Assuming you didn't need the money in the first place, just parking it in an SP500 index fund at the end of each month that it was released would have you up $1,060 with little risk. If you bought TSLA you'd be up $5,854.

Hindsight is 20/20. High risk profiles are only for investors with long enough horizons to recover from bad bets. These 'what if you had invested in Amazon' back in ... articles are amusing but not much more.
 

Bluescreendeath

Posts: 244   +348
I’m sure some people did just that. I personally know plenty of people who received full payments based on prior years’ tax returns who then in 2020 and 2021 made high-six figure salaries but kept on receiving the stimulus checks. Just proves that socialism only works when EVERYONE is equally poor. But hey, this is where we’re headed anyway.
You mean "excessive" socialism because all countries on the planet have some level of socialism.
Capitalism is the private control of property or production, while socialism is the public/govt control of property or production. The USA already has socialism in the form of a government run military, Medicare, Medicaid, welfare, social security, food stamps, publicly funded schools, infrastructure funding, public parks, etc.

The main issue is the crossing the threshold of excessive socialism where the drag on the private sector economy outweighs the benefits.
 

emmzo

Posts: 352   +336
The real money has been made by big corporations, banks, extremely wealthy individuals who had at least, some inside trading. With the help of Musk`s persona (another big player), a joke coin rose to the third most valuable crypto asset. What normal person would have ever bet on it?
 

Burty117

Posts: 4,240   +2,290
The similarity is that neither is predictable or a reliable investment. There are people with the opposite experience as you.
You know someone who won the lottery and proceeded to lose it all betting on Crypto?
But none of that is really my point... my point was that articles like this one are too easy to write after the fact, and that no one should feel bad they didn't buy this particular lottery ticket nor any other (or worse, be tempted into buying high and then selling at the crash, which happens far too often although people seldom brag about it...)
You are just bizarre, Crypto and the lottery are nothing alike, I can put money into Crypto and leave it there until it's made me some money, my lottery tickets are void the moment they expire and I've 100% lost everything I put in.

Are you just a bit salty you bought high and sold low?
 

JamesBlond

Posts: 141   +81
I’m sure some people did just that. I personally know plenty of people who received full payments based on prior years’ tax returns who then in 2020 and 2021 made high-six figure salaries but kept on receiving the stimulus checks. Just proves that socialism only works when EVERYONE is equally poor. But hey, this is where we’re headed anyway.
The solution to the current problem is played out in the movie Avengers End Game.... from start to finish the signs are in the movie what is happening, what has happened and what will happen and how to win