$40B Of Stimulus Checks Could Be Used To Buy Bitcoin: Mizuho Survey

According to a new survey from Mizuho Financial Group, Inc. (TYO: 8411), nearly $40 billion of the new stimulus checks could be spent on Bitcoin and stocks.

What Happened: The survey finds that 10% of the $380 billion in direct stimulus checks are likely to be used to fund the purchase of the market-leading digital currency in addition to equities.

"The survey predicts that bitcoin will account for 60% of total incremental investment spend. We calculate it could add as much as 23% to bitcoin's current $1.1 trillion market value,” said Mizuho’s managing director Dan Dolev.

The Mizuho team surveyed approximately 235 people with less than $150,000 of household income. Close to 40% of these respondents expected to use a portion of their checks to invest, and the majority said that they preferred Bitcoin to stocks.

Dolev noted that Visa Inc (NYSE: V), MasterCard Inc MA, PayPal Holdings Inc PYPL, and Square Inc SQ would likely be the stocks that benefit the most from the stimulus-funded Bitcoin and equity purchases.

See also: How to Invest Your $1,400 Stimulus Check

Why It Matters: The latest round of stimulus checks will see $1.9 trillion being distributed to U.S households in denominations of $1,400.

According to Bitcoin Stimulus, a website dedicated to tracking the value of each stimulus check invested in Bitcoin, a $1200 April 2020 stimulus check invested in Bitcoin has grown by 738% to $10,056.

As market analysts project even higher inflation forecasts as a result of the latest stimulus package, Bitcoin’s popularity as an investment choice to hedge against inflation seems to have grown too.