Bullish poll: 2 in 5 Americans want to invest their stimulus checks in Bitcoin
A new survey found that recipients of stimulus cheques in the US would be more likely to invest in bitcoin and other cryptocurrencies than in traditional equity offerings.
The cheques are coming – for bitcoin
Japanese megabank Mizuho has found in a recent survey that recipients of stimulus cheques in the US are more likely to invest in bitcoin and other cryptocurrencies by Wealth Matrix than in traditional equity offerings, according to a report on market portal MarketWatch.
According to Mizuho, more than 20% of cheque recipients intend to invest up to 20% of their stimulus cheques in bitcoin and/or equities. 13% of them would likely invest 20% to 80% in the markets, while 2% intended to invest more than 80% of their cheques in the markets.
The survey of 235 people found that 2 in 5 respondents (40%) wanted to invest their entire $1,400 stimulus cheque in cryptocurrencies. Mizuho extrapolated this data to find out how much of the $380 billion in direct cheques would flow into the crypto market – and concludes that over $40 billion is on its way to the emerging sector.
„Bitcoin is the preferred investment vehicle among cheque recipients. It accounts for nearly 60% of incremental spending, which could mean $25 billion in incremental spending on Bitcoin from stimulus cheques,“ said Mizuho analysts Dan Dolev and Ryan Coyne.
Stimulus finds a way
Stimulus cheques have been distributed to citizens in the US since last year to combat the effects of the ongoing coronavirus. The idea is to help families live normal lives until the economy returns to normal.
But while there are some who rely on the cheques, a significant percentage of the US population invests the proceeds in financial markets or real estate instead.
Some in the bitcoin space say the stimulus cheques could be worth many times more in the future if recipients decide to buy bitcoin – rather than cash them. The first round of cheques (of $1,200) is now worth over $11,000 if invested in bitcoin.
Meanwhile, Mizuho’s survey shows similar results to those reached by recent surveys in other countries.
A UK survey (of over 2,000 citizens) from earlier this month concluded that over 70% of all investors surveyed are likely to buy Bitcoin this year, with 31% expecting the asset to exceed the $69,000 price level. 18% even expect bullish levels of over $130,000 or more.
But not everyone is happy. Some respondents to the survey think they have already missed the boat and that it is risky to buy Bitcoins at these levels. I wonder what US investors think about that.