Cryptocurrency
Using Your Second Stimulus Check To Buy Bitcoin Could Be A ‘Disaster’
As reported by Forbes, “Stimulus checks helped millions of Americans make ends meet earlier this year, however Democrats and Republicans have struggled to agree on terms for a second stimulus check—and there may not be one at all. “When the first stimulus checks were sent out in April, some appeared to invest it in the […]
As reported by Forbes, “Stimulus checks helped millions of Americans make ends meet earlier this year, however Democrats and Republicans have struggled to agree on terms for a second stimulus check—and there may not be one at all.
“When the first stimulus checks were sent out in April, some appeared to invest it in the cryptocurrency bitcoin, a risky gamble, with a Twitter account set up to track how the value of the $1,200 stimulus check would have changed.
“Now, with the debate around the possibility of a second stimulus check raging on, a prominent bitcoin analyst has examined what would happen if people invested their stimulus checks into bitcoin en masse—warning it could be a ‘disaster.’
“‘The bottom line is that bitcoin is simply not ready for something like this,’ Jason Deane, bitcoin writer and analyst for money advisory firm Quantum Economics wrote via Medium in what he described as a ‘theoretical study’ into what would happen if millions of Americans decided to put future stimulus checks into bitcoin.
“‘The network is the most secure in the world, but it is nowhere near ready to handle the transaction level that would be required to operate properly on a global scale, and too few people currently use and work with it.’
“There are currently millions of people using bitcoin, as well as other cryptocurrencies, around the world, with Blockchain.com reporting 45 million users at the beginning of 2020—up 41% year-on-year, but Deane warned that if there was a sudden influx of new users on a very large scale, it would cause the bitcoin network to buckle…”