Are Californians planning to buy crypto with incoming aid checks?
Governor Newsom will distribute checks of up to $1,050 as inflation relief to California residents. How will they use this amount?
In late June, California Governor Gavin Newsom announced a $9.5 billion budget “to put money back in California’s pocket and to invest in the state’s future.” It will be delivered to residents from 7 October to January 2023.
Who is eligible for the relief check?
Those who submitted their tax return for 2020 by 15 October 2021 are eligible for the relief fund. The amount varies based on the household’s annual income.
The minimum amount is $200 for the head of the household, which gives an annual income between $250,001 to $500,000. A married couple with dependents who have submitted a joint income of less than $150,000 will receive an amount of $1,050. Households earning more than $500,001 annually are not eligible for the relief fund. People can check their eligibility in detail here.
California’s stance on cryptocurrency.
California has diverse investment and tech-savvy residents since it is home to Silicon Valley. Therefore, cryptocurrencies are one of the favorite investment instruments of Californian citizens.
The state has one of the highest adoption of cryptocurrencies in the country, with over 440 businesses accepting Bitcoin as a payment method in the state. Furthermore, California recently scored 100 for the keyword “Cryptocurrency” in Google Trends. Most notably, California Governor Newsom drafted a legal framework for crypto adoption earlier this year.
How will Californians use their relief fund?
Residents can use the amount for necessities in their daily activities, such as paying bills and buying essential supplies.
The burning question is will citizens buy crypto with utilities? Citizens looking for a quick buck or hoping to get rich can consider crypto as a potential investment opportunity.
In 2020, US citizens received $1,200 stimulus checks for Covid aid. Crypto trading platforms reported an increase in purchases equivalent to $1,200. This indicates that some Americans may have bought crypto with their stimulus checks.
Popular stimulus tracking Twitter accountt @BitcoinStimulus, tweets about what would be the value of the $1,200 stimulus check if the amount was invested in Bitcoin.
It is speculations about how putting Covid stimulus checks on Dogecoin would have earned over $500,000. Reddit users have reported profits of more than $12,000 by placing stimulus money in cryptocurrencies.
All of these factors could create FOMO among stimulus recipients to put money from their inflation checks into crypto. However, citizens may also avoid putting their money in crypto considering the bearish sentiments in the market at present. Only time will tell.
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