Data indicates that some of the American people may be spending their coronavirus stimulus check on cryptocurrency.
The amount of purchases of crypto worth of exactly $1200 is staggering. I quess people are making smart investments from the stimulus checks.https://t.co/lT1uJV9BhS — Crypto Beast (@CryptoBeastCB) April 19, 2020
It has been reported that a chart published by Brian Armstrong, the CEO of Coinbase, the United States crypto exchange, suggests that a small portion of the American population may be using their coronavirus stimulus checks to purchase cryptocurrency.
However, on April 17, a tweet, posted by Armstrong shows that the percentage of deposits and buys worth $1,200, the exact value of the stimulus check, recently increased over four times.
🤔 pic.twitter.com/uhz7Od3skX — Brian Armstrong (@brian_armstrong) April 16, 2020
While the tweet does not explicitly state so, Armstrong’s position at Coinbase may suggest that this is the exchange where the data comes from.
It has been analyzed that the upsurge in the amount of $1,200 deposits and buys coincides with when residents began receiving stimulus checks by making the stimulus appear to be the most likely source of those funds.
Likewise, the stimulus checks are meant to ease the economic hardship suffered by many US residents, who lost their jobs or are seeing much lower income amid the COVID-19 pandemic.
It has also been analyzed that many production activities, especially customer-facing social activities such as restaurants or cinemas, closed worldwide to help stop the spread of the COVID-19. These closures have left many without a source of income.
As it has been reported recently by the Washington Post, even low-income Americans who do not file tax returns have the right to receive the package. Parents are entitled to an additional $500 per child.
As per the report, the demand for the stimulus checks is so great that the servers of some banks were unable to manage the request and failed to work properly.
Thus, about 80 million U.S. residents have access to aid.