The stimmies are coming. Eligible Americans have started receiving their $1,400 stimulus checks as part of President Joe Biden’s $1.9 trillion COVID-19 relief package.
But what will they be spending it on?
A significant amount of people may be planning to spend it on Bitcoin. That’s according to a new survey by investment banking firm, Mizuho Securities, as reported today by Yahoo Finance.
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The firm, which is based in Japan but has offices around the world, and has a growing presence in the US, surveyed 235 people.
Mizuho told Decrypt that the average age of survey participants was 41 years and the average household income was $55,000.
Of those surveyed, nearly 2-in-5 said they would use their handouts to invest—and they’re particularly eyeing up Bitcoin and stocks.
In fact, Bitcoin is expected to account for 60% of the total invested: Mizuho Securities estimates that close to $40 billion of the $380 billion in direct stimulus checks could be used to buy the cryptocurrency, along with stocks.
Mizuho’s survey also found that the amount of people investing could add up to 3% to Bitcoin’s market value, Yahoo Finance reported. Bitcoin is currently trading for $56,000 and has a market capitalization of over $1 trillion.
Direct stimulus checks refers to the cash that will be sent to Americans with less than $150,000 in household income.
The first batch of stimulus checks were processed on Friday. Payments will continue to be processed in the coming weeks via direct deposits or through the mail.
The US Federal Reserve last year said it had no plans to curb coronavirus stimulus packages. Analysts have previously told Decrypt that this is causing investors to eye-up Bitcoin and other cryptocurrencies as they fear the value of the US dollar could plummet.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
Original Source: decrypt Americans Could Spend Billion in Stimulus on Bitcoin, Stocks: Survey