Got coronavirus stimulus? Buying Bitcoin has already offered 12% returns

Americans who received their second coronavirus stimulus checks on Dec. 29 have already gained 12% — if they invested it in Bitcoin (BTC).

As the United States government rolls out another round of “free” money to eligible residents, attention is fixed on how many will choose to invest their $600 in cryptocurrencies.

April stimulus recipients now have $5,600

The handouts began last week and are expected to be completed by Jan. 15. According to a dedicated monitoring resource, those who received the money on the first day and who immediately swapped their U.S. dollars for BTC are already up around $75.

Bitcoin, Ether performance in 2021. Source: Digital Assets Data

Bitcoin and Ether (ETH), the largest altcoin by market capitalization, have outstripped practically all competition in the first week of 2021 when it comes to returns on investment.

As mainstream media overflows with tales of how stimulus recipients plan to invest in stocks and consumer goods, notionally with the goal of “stimulating the economy,” those who bought Bitcoin with the previous cash gift in April 2020 are now sitting on $5,600.

At the time, the stimulus check was worth $1,200 — twice the amount of the second round — meaning Bitcoin has supplied gains of 370% if you “hodled” until now. 

The figures underscore the curious way in which the average taxpayer can benefit from the bizarre financial environment that characterizes 2020 and 2021. By simply buying and holding Bitcoin, anyone can outpace even the most seasoned equities trader.

“Maybe we should be sending out the stimulus money in Bitcoin. The $600 will turn to $2,000 in a week anyways,” fund manager Austin Rief summarized in a tongue-in-cheek tweet over the weekend.