A new survey from Mizuho Securities estimates 10% of direct stimulus checks, may be used to buy bitcoin and stocks. This amounts to nearly $40 billion of the $380 billion being sent to the American people.
The Mizuho team surveyed around 235 people with less than $150,000 in household income. Between 35-40% of stimulus check recipients expect to use some portion of their checks to invest. Additionally, these recipients prefer Bitcoin to stocks, according to the survey.
Mizuho managing director Dan Dolev spoke about the survey’s findings. “The survey predicts that bitcoin will account for 60% of total incremental investment spend. We calculate it could add as much as 2-3% to bitcoin’s current $1.1 trillion market value.”
The Mizuho Securities survey also found that 20% of check recipients expected to allocate as much as 20% of their checks to bitcoin and/or stocks. Meanwhile, 13% expected to allocate 20% to 80%, and 2% expected to put 80% or more into the markets.
The findings of this survey fall in line with what Goldman Sachs believes will happen. The investment bank also believes that much of the coming stimulus money will end up in the stock market.
“We expect households will be the largest source of equity demand this year,” said chief U.S. equity strategist David Kostin. “We raise our household net equity demand forecast to $350 billion from $100 billion, which reflects faster economic growth and higher interest rates than we had assumed previously additional stimulus payments to individuals, and increased retail activity in early 2021.”
Investing Stimulus Checks Into Bitcoin Could Be A Smart Move
Investing stimulus checks into Bitcoin would be nothing new as it has happened since the first round of checks. The percentage of $1,200 deposits on Coinbase quadrupled in April of 2020. Some believe this new round of checks will be great for Bitcoin, but others suggest this movement could pose a serious threat to its survival.
If a person had invested their stimulus check of $1200 from April 2020 into Bitcoin, it would be worth $9892.78 today with BTC price at $56,434.72 an 824% return on investment (ROI).