RATE Group | Bitcoin Price Past $10K? It Only Needs 0.7% of US Stimulus Check Money
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Bitcoin Price Past $10K? It Only Needs 0.7% of US Stimulus Check Money

24 May Bitcoin Price Past $10K? It Only Needs 0.7% of US Stimulus Check Money

Posted at 11:18h in Bitcoin News by

Just 1% of the two stimulus checks being sent to Americans in 2020 would be enough to raise the Bitcoin (BTC) price.

That was according to calculations circulating on Twitter this week, which suggest that the supply of new Bitcoins in 2020 could be bought up by less than 1% of the U.S. stimulus money.

More helicopter cash for BTC?

Noted by Matthew Kaye, managing partner at hedge fund Blockhead Capital on May 20, the numbers work by assuming an average BTC/USD price of $10,000 this year.

Miners will unlock 328,500 BTC, which at $10,000 gives a total of $3.285 billion. The total value of the two rounds of stimulus checks is $478 billion, based on the latest comments on the handouts by Treasury Secretary, Steven Mnuchin. 

Thus, to keep the Bitcoin price where it is, just 0.68% of the stimulus money would be required to buy up the new supply.

The equation is aided by Bitcoin’s halving earlier this month, which cut the number of new coins released per block by 50% and inflation to…

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