Bitcoin
From Broke To Bitcoin: The Post-Pandemic Rags To Riches Story
Tony Spilotro · @tonyspilotroBTC | Aug 04, 2020 | 15:00
The pandemic has brought about tough times on many. The economy is struggling, jobless claims are rocketing, yet thanks to Bitcoin, there could be a happy ending to this story.
Here’s how even those down and out could theoretically turn rags to riches through their stimulus and relief money.
$1,200 Stimulus Check Invested In Bitcoin Now Worth Nearly $2,000
The impact of the pandemic on the global economy has been unprecedented and is only just beginning. While things may look bleak for the economy and especially those struggling financially already, there may be an opportunity for some to turn what little stimulus money is coming in into something a lot more valuable.
According to the Internal Revenue Service, stimulus checks began being issued on Saturday, April 11. The maximum individual US taxpayers would receive was $1,200.
Almost immediately, buy orders of Bitcoin in the exact amount of the stimulus money being issued began to spike, revealed Coinbase CEO, Brian Armstrong.
RELATED READING | WHY THE SECOND U.S. STIMULUS ROUND COULD STIMULATE A BITCOIN RALLY
Those who bought BTC for $1,200 on April 11, 2020, and held it though today would now have $1,944. Before the rejection over the weekend, the $1,200 investment would have been worth as much as $2,112 at the peak.
$2,000 in Bitcoin could someday be life-changing money for many, but this is just one chapter in this rags to riches story.
BTCUSD $1200 Stimulus Check Invested Over Time | Source: TradingView
Storytime: Turning Tragedy Into 1 BTC, 1 BTC Into Millions
After the stimulus checks went out, a Twitter account was created, designed to track the progress of the $1,200 investment much as we have outlined above. The journey of this investment, like Bitcoin, has had plenty of ups and downs.
When the cavalry did arrive in the form of cold hard cash and stimulus money, it didn’t just come via a one-time check of $1,200. Those who received added pandemic relief and unemployment assistance received up to an additional $600 per week.
Those payouts began on April 15, 2020, just days after the stimulus checks went out. According to the Twitter account that tracks stimulus investments, stacking that $600 weekly investment in BTC on top of the initial $1,200 check would have resulted in owning 1.20 BTC.
RELATED READING | GOLD SETS RECORD HIGH AHEAD OF SECOND US STIMULUS, WILL BITCOIN FOLLOW?
That amount of Bitcoin now totals roughly $13,000, but even that isn’t how this happy story ends on a high note. However, owning one full Bitcoin is truly a feat when there’s only 21 million that’ll ever exist.
Top investors like Max Keiser and Tim Draper are calling for Bitcoin to reach hundreds of thousands to possibly millions per BTC.
If any of those scenarios play out, anyone who took the risk of putting all of their stimulus relief money into Bitcoin could become incredibly wealthy.
In no way should anyone consider doing without necessities like groceries, or paying bills just to buy Bitcoin. The real moral of this story is although times are now tough, Bitcoin could be an insurance policy for future wealth, and now may be the time to load up.
Featured image from Unsplash. Charts from TradingView.
