No one has said Americans need to spend their COVID-19 stimulus checks on necessities like food, shelter, and utility bills (although many have no choice). Some spent some of their stimulus money on Bitcoin investments – and they made a nice profit in the process.

See: 8 Best Cryptocurrencies To Invest In For 2021
Stimulus update: Taxpayers have until midnight tonight to change their income on the Child Tax Credit Update Portal

Cointelegraph analysis found that since the issuance of the first stimulus check in April 2020, a “timely” investment of $ 3,200 of stimulus money in Bitcoin would have yielded a total profit of $ 4,514 by the end of October 2021 – a gain of about 140%.

As Cointelegraph noted, the average U.S. taxpayer has received three rounds of stimulus checks from the federal government: one starting in April 2020, the next starting in December 2020, and the third starting in March 2021. In the Cointelegraph study, 11 % of respondents between 18 and 34 have reinvested part of their stimulus checks in cryptocurrencies.

Related: Satoshi Nakamoto’s Bitcoin Whitepaper Turns 13 – How Rich Is The Anonymous Crypto Creator Today?

Those who invested the first round of stimulus payments in Bitcoin would have made a net profit of around 442% as of October 31, 2021, turning an investment of $ 1,200 into $ 5,304. Investing the second stimulus check of $ 600 would have made a profit of about $ 312, for a gain of 152%. The average amount of the third stimulus check, around $ 1,400, would have yielded a more modest profit of $ 98 – a 7% return – due to Bitcoin’s volatility in recent months.

Cointelegraph arrived at the figure of $ 4,514 taking into account when average investors could have bought Bitcoin.

Explore: Second Bitcoin Linked ETF Launched, Aimed to Provide “Exposure to Wider Investor Audience”
Learn: Stimulus Money Could Sink Stock Market 15% By November

As GOBankingRates previously reported, the world’s largest cryptocurrency has stabilized somewhat in recent weeks after a bumpy run earlier in the year. Due to its long-term potential, you might not want to cash in Bitcoin when its price skyrockets. At the same time, you probably don’t want to invest too much money in speculative assets like crypto. Financial advisers recommend limiting crypto to no more than 5% of your total investment portfolio.

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Last updated: November 1, 2021