The Stimulus is Headed into Bitcoin

Even as Bitcoin sits near record highs, a new survey by Mizuho Securities finds that many Americans plan to put their stimulus check into the hot cryptocurrency:

…the Mizuho survey found around 20% of check recipients expected to allocate as much as 20% of their checks to bitcoin and/or stocks, while 13% expected to allocate 20% to 80%, and 2% expected to put 80% or more into the markets.

Bitcoin even outranked stocks, another popular choice:

“Bitcoin is the preferred investment choice among check recipients. It comprises nearly 60% of the incremental spend, which may imply $25 billion of incremental spend on bitcoin from stimulus checks,” wrote Mizuho analysts Dan Dolev and Ryan Coyne, in a Monday note (see chart above). “This represents 2-3% of Bitcoin’s current $1.1 trillion market cap.”

The graph below shows the extent to which bitcoin is favored over stocks as a home for stimulus funds:

This survey was small, so we shouldn’t put too much stock into it, but this could be a major shot in the arm for the cryptocurrency. I also expect a pop in other cryptocurrencies like Ethereum and Dogecoin, along with meme stocks like GameStop and AMC. But I’d advise my fellow Americans to buy stock/bond index funds instead.

For more on cryptocurrencies, check out these posts:

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Photo: “Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo” by antanacoins is licensed under CC BY-SA 2.0

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