In 2020, the Coronavirus Aid, Relief and Economic Act provided payments of $1,200 to 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 2020 declared additional payments of $600 per eligible adult and up to $600 for those with qualifying children.
The American Rescue Plan Act of 2021 provided an additional $1,400 payment to eligible adults and up to $1,400 for those with qualifying children.
The stimulus money was used by Americans for various items, including helping offset increased expenses or a loss of income due to job cuts related to the COVID-19 pandemic. Others used the stimulus money to invest in stocks and cryptocurrencies, pay off debt, or put into savings.
Here is a look at the return a consumer would have if they put their stimulus checks ($1,200, $600 and $1,400) into leading cryptocurrencies like Bitcoin BTC/USD, Dogecoin DOGE/USD and Ethereum ETH/USD.
The hypothetical results are based on the dates of April 11, 2020, December 29, 2020 and March 12, 2021 for the stimulus checks.
Stimulus Checks in Bitcoin: Investing in Bitcoin with a portion of the stimulus checks may have been a popular option for investors and people looking to store some of the payment away from the U.S. 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 0.219 BTC. Based on a price of $24,020.55 for Bitcoin today, that $3,200 would now be worth $5,260.50.
Related Link: How To Buy Cryptocurrencies
Stimulus Checks in Dogecoin: The meme cryptocurrency known as Dogecoin gained interest and value in 2021 thanks to retail investors and vocal public supporters like Mark Cuban and Tesla Inc TSLA CEO Elon Musk. Here’s how stimulus checks in Dogecoin would have fared.
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 DOGE. Based on a price of $0.07118 today, that $3,200 would now be worth $53,740.62.
Stimulus Checks In Ethereum: One of the fastest growing cryptocurrencies in 2021 was Ethereum, thanks to its connection to non-fungible tokens. Here’s a look at how stimulus checks invested in the second largest cryptocurrency would have fared.
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 ETH. Based on a price of $1,839.21 for Ethereum today, that $3,200 investment would now be worth $16,589.67.
Stimulus Check In All 3 Cryptocurrencies: A more diversified approach from an investor could have seen investments in Bitcoin, Dogecoin and Ethereum. Splitting the $3,200 into equal investments of the three cryptocurrencies on the respective stimulus payout days would have given an investor 0.0731 BTC, 251,665 DOGE and 3 ETH. The three cryptocurrencies would be worth $25,187.04 today based on equal investments from the three stimulus checks.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.