On March 15, 2021, Mizuho Securities Co., a wholly owned subsidiary of the Mizuho Financial Group, revealed the results of a new survey that says a large amount of stimulus money will find its way into the stock markets and the economy of cryptocurrencies. Participants in the Mizuho survey earned less than $ 150,000 a year and estimates suspect that 10% of the $ 380 billion in direct stimulus checks will go to bitcoins and stocks.
Mizuho Securities Survey estimates that $ 24 billion of stimulus checks can be used to buy Bitcoin
Japanese securities and investment firm Mizuho Securities recently interviewed 235 individuals who earn less than $ 150,000 a year. The survey covered stimulus expenditures or what they expect Americans to buy with direct checks. Of the colossal $ 1.9 trillion aid package signed by US President Joe Biden, $ 380 billion is suitable for direct stimulus checks. The recently published survey says the bank estimates that about 10% or $ 40 billion of stimulus financing will reach stocks or buy bitcoin (BTC).
“The survey predicts that bitcoin will account for 60% of the total spending on incremental investments. We calculated that it could add up to 2-3% to the current market value of $ 1.1 t trillion for bitcoin, ”explains Mizuho managing director Dan Dolev.
After Americans received direct stimulus checks of $ 1,200 and then $ 600, it was assumed that many people spent their funds on cryptocurrencies. For example, in mid-April, Coinbase CEO Brian Armstrong tweeted on a chart that showed a peak in deposits of $ 1,200 on the San Francisco-based stock exchange. The latest bill says that Americans who earn $ 75,000 or less a year will receive a payment of $ 1,400. Couples earning 150k or less per year can receive up to $ 2,800 and a couple with two children can receive up to $ 5,600 in direct stimulus funding.
Mizuho survey participants ‘prefer bitcoin to stocks’
It was also widely reported this week that Americans are already receiving stimulus money from the US government. Of the 235 participants in the Mizuho Securities survey, 200 said they expected stimulus payments in the “next few days”. About two out of five recipients of the direct stimulus check say that a portion of the funds will be allocated for investment purposes. The survey also noted that survey respondents also “prefer bitcoin to stocks”.
With regard to shares, the survey participants mentioned the purchase of shares in companies such as Square, Paypal, Mastercard and Visa. With bitcoin (BTC) included in these financial heavyweights, financial technology (fintech) appears to be at the forefront of investments. In addition to Mizuho Securities, Goldman Sachs’ chief stock strategist in the United States, David Kostin, says American families will push demand for liquid stocks to new levels. “We expect families to be the biggest source of demand for stocks this year,” explained Kostin.
What do you think of the recent survey published by Mizuho Securities that estimates that Americans will buy bitcoins and stocks with their stimulus money? Let us know what you think about this subject in the comments section below.
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