The US government could send other “stimulus checks” to its citizens, which some could use to buy Bitcoin (BTC) or altcoins, which would ironically mean that the skeptic Donald Trump, who is seeking re-election next November, could unintentionally help the adoption of cryptocurrencies.
Back from vacation, the US Congress will discuss the phase 4 stimulus package later this month. The question that arises once again in the midst of the pandemic, recession and general disillusionment is whether some of this money will also be used to buy cryptos. According to Cnet, it could range from $ 1,200 to $ 2,000 a month until the end of the pandemic. The first checks issued and which benefited individuals were worth up to $ 1,200.
In an open letter written by theEconomic Security Project and The Justice Collaborative, a group of 153 economists asked American policy makers to continue making automatic direct cash payments to Americans until the country’s economy is strong enough and there is sufficient evidence that it is on the road to recovery. They argued that these types of payments could boost consumer spending and improve financial security, thereby speeding up the economic recovery, Reuters reported.
Read also: Pay in Bitcoin everything you want in this village of El Salvador.
This month, Trump reiterated his support for a new set of stimulus packages: “I am in favor of higher amounts than those proposed by the Democrats.” According to the CNBC article, he said “I want more money to reach people so they can spend it. I want money to get there quickly and easily.”
In June, Treasury Secretary Steven Mnuchin also said he could be open to a new round of federal aid related to the coronavirus.
It is common knowledge that Donald Trump is against cryptocurrency he attacked it in July of last year, which many members of the community saw as a blessing in disguise as it brought additional recognition and exposure. In June 2020, Trump allegedly told Mnuchin to crack down on trading and selling Bitcoin at instant cryptocurrency exchange – LetsExchange.io.
Meanwhile, the younger generation recently turned to stocks, buying for a penny using the stock app Robinhood.
“If every stimulus check was used to buy bitcoins, we would see the BTC’s market capitalization exceed $ 2 trillion,” said the director of business development for Kraken Dan Held | in June. Today, the capitalization exceeds $ 170 billion, while the BTC to XMR convert is trading around $ 9,200.
The study Opportunity Insights Harvard University revealed that a large portion of April’s CARES stimulus checks, which amounted to US $ 2.3 trillion, were used to pay for essentials.
Jay Hao, the CEO ofOKEx, recently argued that the second stimulus check may continue to drive Bitcoin growth.
He said retail investors “will be the main promoters of soaring bitcoin prices with this second wave of money distributed to boost the recovery.”
“IF MORE MONEY FLOWS INTO THE MARKET, RESULTING IN MORE FUNDS BEING HELD BY RETAIL INVESTORS AS PART OF THE SECOND STIMULUS PACKAGE, I THINK THEY WILL LIKELY USE BITCOIN AS AN ALTERNATIVE INVESTMENT. AFTER ALL, WHERE CAN THEY GET A GOOD RETURN ON THEIR SAVINGS? SAID MR. HAO.
According to Arthur Hayes, the CEO of BitMEX, the price of Bitcoin depends in part on the decision of millennials to invest or not part of their stimulus money.
Millennials will receive money from all governments due to job losses and this money could be used to buy bonds, gold or crypto, said Hayes. “How they are going to react and how they are going to invest is what I think will tip the scales on the Bitcoin side or not.” he said, adding that this could start happening in the next few months, in the third quarter.