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Introduction
Firstly, Bitcoins, a decentralized currency, is highly volatile, and the prices keep changing every hour, let alone every day, week, or month.
I have been investing in Bitcoins for the last couple of years, and the thing that I like the most about making payments in Bitcoins is that there are no intermediaries in between. Bitcoin payments always give the facility of peer to peer encryption, which makes it highly lucrative for businessmen like me.
The chances of inflation in Bitcoins is next to impossible as there is only a limited amount of Bitcoins that can ever be created. But do you know how the US Stimulus Package is contributing to the rise in Bitcoins’ price? Let us find out!
What Is The US Stimulus Package?
Before knowing how the US Stimulus Package contributes to Bitcoin’s Price Rise, let us learn what the US Stimulus Package is.
The US Stimulus Package is a $900B relief package announced by the US Congress right after the COVID-19 pandemic hit. The package was launched with the intention to help out the families and businesses that were severely affected by the COVID-19 pandemic.
Below are some of the specificities of the US Stimulus Package that you ought to know.
- The US Stimulus Package offered payments up to $600 to all tax-paying individuals and children that were dependent on their parents.
- The amount of money was less for people who earn above $75,000 a year and couples that make more than $150,000 together. Citizens earning more than $99,000 a year were not entitled to any amount of the Stimulus Package.
- Apart from providing the money directly to the citizens, the US Stimulus Package provided an extra $300 per week as unemployment welfare until the middle of March.
- The US Stimulus Package was not only for the American citizens, but it also took into consideration individuals and families that were immigrants like Latinos, Cubans, Africans, who paid taxes to the Government, despite living illegally in the Country.
- The new US Stimulus Package discards the $2.2 trillion aid provided by the old CARES Act that was approved in March 2020. The CARES Act offered direct payments to adult individuals up to $1,200, $500 per child, and $600 per week to the individuals that were unemployed.
How The US Stimulus Package Is Contributing to Bitcoin’s Price Rise
Now that you know the key elements of The US Stimulus Package, it’s time to find out how it is contributing to the surging prices of Bitcoins.
The main culprit, if you may call it so, is inflation. The US Government is busy providing several relief funds to the citizens of the country, but it is also increasing the massive inflow of cash in the banking system.
More money in the banking system less will be its value. Businessmen and crypto traders are clearly seeing a rise of inflation, and they are only expecting it to be more and more, which is why they are investing and making transactions in Bitcoins.
In bitcoins, there is very little to no scope for inflation as there only will be 21 million Bitcoins that will ever be created, so investing and trading in Bitcoins sounds more lucrative to businessmen amid these difficult times.
Even individuals who do not possess a very strong knowledge in business and finance can clearly tell that the dollar is eventually weakening and is expected to weaken furthermore in the foreseeable future.
Investors, traders, and businessmen are massively trading in Bitcoins, which has led to Bitcoin’s Price Rise. Bitcoin’s price as of January 2021 is at an all-time high of a staggering 35,000 USD.
Final Thoughts
The COVID-19 pandemic has changed the way businessmen perceive cryptocurrencies, especially Bitcoins. As dollars keep weakening, the price of Bitcoins will keep surging. It is the best time to start trading. To know more, you can visit ambcrypto.com
