Bitcoin suffered a devastating blow along with the rest of the financial world on Black Thursday. But unlike other assets, the top cryptocurrency has grown tremendously since then and has become the top performing asset of 2020.
Emergency checks sent to American taxpayers to stimulate economic activity were only used to boost Bitcoin’s upward momentum, and months later the asset is trading well above its previous all-time high. Here’s a look at what investors made by introducing their Stimulus Check into Bitcoin, and why investors are even more likely to do so with the second round of government funding.
Church 2.0: Cryptocurrency was created to separate money from the state
2020 was a bizarre year that few could have predicted. And although the exact scenario itself was not considered, Satoshi Nakamoto was able to observe the current monetary implosion.
For this reason, Bitcoin was primarily created and designed to be both decentralized and not sovereign. By separating money from the state, citizens are freed from the control that fiat currencies give governments over the central bank.
The urgent need for a way out only recently became apparent when the money supply spiraled out of control, led by central banks trying to give the economy a shot in the arm.
Related reading | Stimulus Checked: Here is the ROI of a $ 1,200 investment in top crypto assets
To hide the fact that the government is printing more money left and right to make citizens pay the tax one way or another, politicians made a direct payment of $ 600 to American taxpayers.
But the more money the government prints, the faster inflation gets out of hand, and very quickly the initial $ 1,200 and second round of $ 600 start to look more like a “loan” given to taxpayers for which they pay the rest will spend your life paying back.
This is just one of the many reasons why investors who are tired of paying for government inflation and taxation are putting their stimulus money into bitcoin.
Bitcoin chart compared to when stimulus money was spent to date Source: BTCUSD on TradingView.com
Buying Bitcoin with Stimulus Money could protect its value and dispense with a flawed fiat system
Investing in Bitcoin in 2020 is a breeze. Cryptocurrency is enjoying greater adoption than ever, it has entered a new parabolic phase and bull market, and according to analysts, this is just the beginning.
To make the decision even easier is the fact that the initial check for $ 1,200 invested in Bitcoin would have generated an ROI of $ 3,000 in excess of the $ 1,200 set. Converting $ 1,200 to $ 4,200 is extremely attractive, and another $ 600 invested in Bitcoin could be even more profitable given the momentum and expectations of the asset to reach $ 100,000 or more within a year.
Related reading | Ethereum beats Bitcoin, gold and stocks on stimulus check investments
But aside from the stimulus money returns, which make sense given that they’ll be attributed to inflation over the next few decades, there are other reasons to turn fiat funding into crypto.
The breakdown of where the new stimulus money is going shows a trail of flow into other countries and into the US military. If U.S. taxpayers pay that $ 600 check indefinitely, they should get the benefits too.
This is just one more way to prove how badly the US government is handling monetary policy, and the only way to sign out of this broken system is by buying bitcoin.
So while the government is giving you money that you will likely pay for forever, use it to solve the problem and protect the money you get.
Featured image from deposit photos, charts from TradingView.com
