Survey Shows Stimulus Spending on Bitcoin Could Reach $40Billion

A new survey out of Mizuho Securities on Monday estimates that 10%, or nearly $40 billion of the $380 billion in direct stimulus checks, may be used to purchase Bitcoin(BTC) and stocks.

According to CNN as it stands, 90% of American households qualify for the $1400 per person (including dependants) stimulus check, following the U.S. President Joe Biden signing the stimulus package into law.

People Prefer Bitcoin

Yahoo Finance reported Monday that Mizuho managing director Dan Dolev and his team surveyed approximately 235 individuals with less than $150,000 of household income. Of that, about 200 said they expect to receive the third round of direct stimulus payments in the coming days.

The results show that 35% – 40% of the people that participated in this survey are aiming to invest some of it in crypto (Bitcoin) or stocks, with 61% saying they would choose Bitcoin over equities.

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 $1.1t trillion market value

Dan Dolev, Mizuho Securities, MD

Considering the sample size of the survey is only 235 it remains to be seen whether these outcomes will come to fruition, yet the outlook is positive that a reasonable part of the stimulus will find its way into the crypto economy.

Others Also Weighed in on How Stimulus Checks Might be Spent

Mizuho isn’t the only one making predictions, David Kostin, Goldman’s chief U.S. equity strategist recently stated :

We expect households will be the largest source of equity demand this year […] A good chunk of the new stimulus money about to be funnelled into American households shortly via the $1.9 trillion COVID-19 relief bill may find its way into the stock market

David Kostin, Goldman’s chief U.S. equity strategist

Ray Dalio also commented yesterday on investing and that money shouldn’t be spent on bonds due to “ridiculously low yields” and rather encouraged people to buy higher-returning, non-debt investment assets in a LinkedIn Blog post.