Mizuho’s survey participants are those earning $150K or less per year. From the survey result, an estimated 10% of the total US stimulus checks will be invested in bitcoin and equities.
Mizuho Securities Co. disclosed the findings of a new survey regarding the Us stimulus checks from the US government. The result shows that a great deal of the money will be placed into the stock markets and the cryptocurrency economy.
Survey in relation to the US stimulus check
A Japanese investment and securities firm, Mizuho Securities, recently conducted a survey of 235 individuals earning less than $150K annually. The survey includes stimulus expenses or plans on what to do with the money. Recently, US President Joe Biden signed the relief bill amounting to $1.9 trillion relief packaged. And out of the total package, $380 billion has been appropriated for the direct stimulus checks. The stimulus check is aimed to help financially ailing Americans.
The published survey says that an estimated 10% or about $40 billion worth coming from the stimulus funds will be used to buy stocks or bitcoin. The survey projected that bitcoin will account for 60% of the total investment spending. This can add up to as much as 2-3% to the current $1.1 trillion market value of bitcoin, reported Mizuho’s managing director Dan Dolev.
Observations from the past and current projections
Observations have been made that during the past stimulus checks, many Americans spent their money buying cryptocurrencies. Coinbase CEO Brian Armstrong tweeted last mid-April 2020 about his observation. He noticed that there was a spike of $1,200 deposits to the San Francisco-based exchange. Assuming that they must have been coming from the stimulus checks.
The 3rd stimulus bill gives out $1,400 to Americans earning $75K or less annually. Couples combined earnings of $150K or less annually will receive up to $2,800. For couples with two children, they could receive up to $5,600 from the direct stimulus funds.
Reports are saying that Americans have started receiving the stimulus funds. Out of the 235 survey respondents, 200 of them expect their stimulus money to come within the next few days. Around 40% of them say that they are planning to allocate funds for investments. The survey also noticed that more respondents prefer buying bitcoin than stocks. Bitcoin is gaining ground as more popular personalities invest huge amounts buying bitcoin.
Results from the survey show that many participants plan to allocate investment by buying equities and bitcoin. And bitcoin seems to be at the forefront of investments. In addition, Goldman Sach’s chief David Kostin says that Americans will bring the equity demand to a higher level. Furthermore, expectations are high for retailers to elevate the demand this year.
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