Stimulus Checks Are Being Spent on Bitcoin
Stimulus money is being sent to nearly every American over the next few months, and while that money is intended to help support individuals take care of their families, there are a number of ways that people are interpreting that. In fact, there are some strange areas that stimulus checks are being spent, and then there are some that are not quite as directly linked to overall wellbeing, but still valid, none-the-less. Bitcoin is one area that stimulus checks are being spent.
Why People are Buying Bitcoin?
The idea behind buying bitcoin is that the American dollar is likely to continue to weaken as more and more money is needed to improve the economy. The longer the current pandemic continues, the harder it’s going to be for the American government to get by without continuing to print more money. If that happens it means that the value of the dollar will continue to drop and that $1,200 stimulus check might not go quite as far as it would otherwise. That’s why some people are turning to bitcoin.
Bitcoin is a completely separate currency and it’s not based on the American dollar at all. Instead, the idea is that it gives investors a way to hedge their bets against the inflation that’s sure to come. For those who are looking into this method of investment and this way of using their check, they believe that it will protect them from what may be coming. If the value of the dollar continues to go down, it could mean disaster for the American economy as a whole. And having American currency would then not be able to support the livelihood that most require.
By purchasing bitcoin and having a currency investment that’s separated from the American dollar, many believe that if this economic collapse does come they will be protected. That means they would still be able to utilize that money at a later date, and in a form of currency that is better balanced to what is happening within the economy as a whole. But that’s not the only reason to look into buying bitcoin with that stimulus check. Another reason is that it prevents the money from being taken.
If you are currently in any form of debt the stimulus money that you get can actually be seized to pay your debts. That doesn’t mean credit card debt or a mortgage, but rather any debt that has been sent to collections or that is currently a judgement against you. These debtors have the right to seize property in some instances and the financial compensation that you get from the government has not been sufficiently protected from this type of seizure. If you have a claim against you and did not previously have the money to pay it, your stimulus money could be taken to do it. But with bitcoin that’s not possible.
There’s a great deal to consider when it comes to investing in bitcoin with your stimulus money. For some, it’s a way to protect their money and their finances from those who would seize it. For others it’s a way to protect against the loss of money due to inflation. But either way, bitcoin may just be the way to go.
Author: Marko Vidrih
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