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Investing Your $1200 Stimulus Check in Cryptocurrencies: A Comparison

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Chapter 1: The Stimulus and Cryptocurrency Surge

In April 2020, the distribution of the initial $1200 stimulus payments coincided with a significant upward trend in both the stock and cryptocurrency markets. Investors who channeled their stimulus funds into Bitcoin during this period would now find their investment has grown substantially.

As reported by Nikolaos Panigirtzoglou from JPMorgan Chase’s strategy team, Bitcoin could potentially reach a target exceeding $146,000 by the end of 2021.

A recent survey conducted by Grayscale Investments indicated that 63% of respondents, out of 1000 investors aged 25 to 64, noted the pandemic influenced their decision to invest in Bitcoin over the previous four months. If you’re curious about the returns from investing your $1200 in various cryptocurrencies, you’re in the right place. Let’s explore how much that amount could be worth today.

Section 1.1: Dogecoin — A Surprising Winner

Dogecoin price increase since April 2020

Dogecoin, often referred to as the "Elon Musk coin" due to the billionaire’s involvement, was valued at about $0.002 per coin in April 2020. Investing the full $1200 would have allowed the purchase of approximately 600,000 coins. Currently, these coins could be worth around $228,000, yielding a staggering return of 18,900%. Hence, those who invested their stimulus check in Dogecoin would now possess over $228,000 as of April 15, 2021.

Section 1.2: Ethereum's Performance

Ethereum was trading at approximately $170 per coin in April 2020. A $1200 investment would have secured around 7.05 coins, which today would be valued at roughly $17,381, translating to a return of about 1300%. Thus, investors in Ethereum would now have more than $17,381 as of mid-April 2021.

Subsection 1.2.1: Ethereum Classic — A Solid Investment

Ethereum Classic, which is considered a counterpart to Ethereum, was priced at around $13.95 per coin in April 2020. A $1200 investment could have bought about 86 coins, which are now valued at approximately $3,354, equating to a return on investment of 179.5%. Investors in Ethereum Classic would now have over $3,354 as of April 15, 2021.

Section 1.3: Bitcoin — The Cornerstone of Crypto

Bitcoin value growth since April 2020

No discussion about cryptocurrency investments would be complete without mentioning Bitcoin. In April 2020, Bitcoin was priced at around $7,000 per coin. A $1200 investment would have purchased approximately 0.17 Bitcoin, which is currently valued at about $63,000, bringing the worth of the initial investment to around $10,710. This results in a return of 792.5%, meaning those who invested in Bitcoin back then would now have more than $10,710 as of mid-April 2021.

Chapter 2: The Future of Cryptocurrency

Is it too late to invest in cryptocurrencies? The answer appears to be no. With Tesla’s recent investment of $1.5 billion in Bitcoin, and Visa developing an API for banks to facilitate transactions using Bitcoin, the future seems promising.

Additionally, Ari Paul, co-founder of BlockTower Capital, believes Bitcoin could yield returns exceeding tenfold over the next two years. He predicts that the current bull market could extend through the end of 2022, with Bitcoin potentially stabilizing between $100,000 and $400,000. While the future remains uncertain, it is clear that we are only beginning to explore the vast potential of the cryptocurrency realm.

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