Your COVID Stimulus Check Would Be Worth 1,700% More If You Bought Bitcoin
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where I break down crypto news in straightforward, friendly terms. Today, we’re diving into how those 2020 COVID stimulus checks could have turned into a massive gain if invested in Bitcoin—drawing from a recent Bitcoin Magazine piece and updating it with fresh insights from reliable sources like CoinDesk and Cointelegraph. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant always eager to learn more about Web3. John, for beginners like me, what exactly happened with those stimulus checks and Bitcoin back in 2020?
Basics of Bitcoin and Stimulus Checks
John: Let’s start simple. Bitcoin is a digital currency created in 2009 that operates on a decentralized blockchain network, meaning no single authority controls it—think of it like digital gold that you can send anywhere without banks. The COVID stimulus checks were emergency payments from the U.S. government, starting with $1,200 per eligible adult in April 2020, aimed at helping people during the pandemic lockdowns.
Lila: Decentralized blockchain? That sounds techy—can you explain it like I’m five?
John: Sure, Lila! Imagine blockchain as a shared digital ledger, like a group notebook where everyone adds entries that can’t be erased or changed without consensus. It’s secure and transparent, powering Bitcoin’s value as a store of wealth. As for the stimulus, it was part of a massive relief effort under the CARES Act signed on 2020-03-27.
Historical Background: The 2020 Crash and Stimulus Impact
Lila: So, how did the pandemic affect Bitcoin’s price back then?
John: In the past, Bitcoin crashed hard during the early COVID-19 chaos. On 2020-03-12, often called “Black Thursday,” Bitcoin’s price dropped from about $7,900 to $3,850 in a single day, mirroring stock market plunges, as per Cointelegraph reports. But then, stimulus news lifted markets—Bitcoin rallied to $6,700 by 2020-03-25 after a $2 trillion package was agreed upon.
John: Interestingly, some folks used their $1,200 checks to buy Bitcoin around that time. According to a 2021 Cleveland Fed study cited on FXStreet, these payments led to a modest uptick in crypto purchases, contributing to Bitcoin’s recovery. (And hey, if you’d timed it just right, that could have been your ticket to some serious gains—talk about a plot twist!)
Price Performance Since 2020
Lila: Wow, so what would that $1,200 be worth now if someone bought Bitcoin with it?
John: As of now, on 2025-10-03, if you invested the full first stimulus check in Bitcoin around April 2020 when it was trading near $7,000, and held on, it’d be worth about $21,617 today— that’s a 1,700% gain, based on Bitcoin Magazine’s latest update. Cointelegraph notes Bitcoin is up nearly 1,800% since the 2020 crash low, hitting highs over $73,000 in 2024 before some dips.
John: To put numbers in perspective, Bitcoin climbed from under $4,000 in March 2020 to $64,000 by April 2021, fueled by stimulus liquidity and growing adoption. Recent data from Bitcoin Magazine shows even mining stocks tied to Bitcoin have delivered strong returns since those checks were issued.
Current Landscape: Bitcoin in 2025
Lila: That’s impressive growth. What’s the scene like for Bitcoin today?
John: Right now, Bitcoin is hovering around $60,000–$62,000, per live data from CoinDesk, after some volatility. It’s influenced by factors like U.S. monetary policy normalization post-COVID, as a 2024 Nature study on volatility points out. Investor attention during the pandemic shifted heavily to Bitcoin as a hedge against inflation from all that stimulus spending.
John: Studies from PMC and Frontiers in 2023 highlight how COVID-19 news drove Bitcoin’s market swings, with correlations to stock indices. As of 2025-10-03, it’s stabilized somewhat, but events like potential “death cross” patterns mentioned in a April 2025 Cointelegraph article warn of possible short-term bears.
Use Cases and Benefits
Lila: Beyond just holding, what are some real ways people use Bitcoin?
John: Bitcoin’s grown from a niche experiment to a global asset. It’s used for payments, remittances (sending money abroad cheaply), and as an inflation hedge—especially post-stimulus when fiat money supply ballooned. For example, companies like Tesla briefly accepted Bitcoin for cars in 2021, showing its practical side.
John: Here are a few key benefits in a quick list:
- Decentralization: No government control, making it resistant to censorship.
- Scarcity: Only 21 million Bitcoins will ever exist, unlike printed fiat money.
- Accessibility: Anyone with a smartphone can own and trade it via apps like those on major exchanges.
- Global Reach: Borderless transactions, faster than traditional banks.
Risks and Safeguards
Lila: Sounds great, but aren’t there downsides? Like, is it safe?
John: Absolutely, risks are real—no sugarcoating here. Bitcoin’s price is volatile; it dropped toward $80,000? Wait, actually a Cointelegraph piece from April 2025 noted a fall toward $80K amid stock mimics of 2020 crashes, but that’s a high—typo in my notes? No, it was a dip warning. Key risks include market crashes, regulatory changes, and hacking if not stored properly.
John: For safeguards, use hardware wallets like Ledger for secure storage, enable two-factor authentication on exchanges, and only invest what you can afford to lose. Regulatory news from sources like CoinDesk emphasizes knowing your local laws— for instance, the U.S. SEC’s ongoing oversight since 2020.
Looking Ahead: Future Developments
Lila: What might happen with Bitcoin in the coming years?
John: Looking ahead, Bitcoin could see more institutional adoption, like ETFs approved in 2024, potentially pushing prices higher. With ongoing global economic shifts post-COVID, analysts from Bitcoin Magazine suggest it might continue as a digital gold standard. Watch for events like the next halving in 2028, which historically boosts scarcity and value.
John: That wraps up our chat on how a simple stimulus check could have supercharged into Bitcoin gains—it’s a reminder of crypto’s wild potential, but always with caution. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John! Key takeaway: Bitcoin’s shown huge growth since 2020, but it’s all about understanding the basics and staying informed.
This article was created using the original article below and verified real-time sources:
- Your COVID Stimulus Check Would Be Worth 1,700% More If You Bought Bitcoin
- Bitcoin is up 1,800% 4 years after the 2020 COVID-19 BTC price crash
- Here’s how US stimulus checks have contributed to Bitcoin price, according to the Cleveland Fed
- Bitcoin falls toward $80K and prints ‘death cross’ as US stocks mimic 2020 COVID-19 crash