Back in 2020, millions of Americans received federal stimulus checks as part of the COVID-19 economic recovery effort. While most used the funds to cover immediate needs, a few saw an opportunity to grow their money by investing in digital assets. XRP, one of the top cryptocurrencies at the time, proved to be a potentially life-changing choice. If you had invested your stimulus payments in XRP, your holdings today would be worth over $31,000.
Let’s explore how this scenario would have played out and why XRP turned out to be an even better performer than Bitcoin during the same period.
The 2020 Stimulus Relief Breakdown
To ease the financial strain caused by the pandemic, the U.S. government rolled out two rounds of economic impact payments. The first came through the CARES Act, signed into law on March 27, 2020. It provided up to $1,200 per eligible individual and up to $2,400 for couples filing jointly, with an additional $500 for each child under the age of 17. By the end of March that year, over 161 million payments had gone out, totalling $271.4 billion.
Later in the year, the government passed the COVID-related Tax Relief Act on December 27, 2020. This second round provides grants of up to $600 per person, $1,200 per couple, and $600 for each qualifying dependent. The IRS distributed these payments via direct deposit, physical checks, and prepaid debit cards.
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What Would Happen If You Invested in XRP?
Most people understandably spent their stimulus checks on essential expenses, but consider what could have happened if someone had taken a different path and bought XRP instead.
When the first stimulus checks were deposited in early April 2020, XRP traded at an average price of $0.18. Using the full $1,200 to purchase XRP at that price would have secured approximately 6,666 tokens.
By the time the second stimulus round landed in late December 2020, XRP had increased slightly in value to around $0.20. Investing the $600 received at that time would have added another 3,000 tokens to your holdings.
Combining both investments would have resulted in a total of 9,666 XRP tokens purchased with the two stimulus payments.
What That XRP Is Worth Today
Fast-forward to the present day, and XRP trades at around $3.20. Those 9,666 tokens, originally purchased with $1,800 of stimulus money, would now be worth approximately $30,931. That’s an increase of 1,622%over five years.
This growth translates into a compound annual growth rate of roughly 77%. In the world of personal finance and investing, such performance is exceptional.
XRP vs Bitcoin: Which One Delivered More?
To understand the full scope of this growth, it is helpful to compare XRP’s performance to that of Bitcoin over the same time period.
In April 2020, Bitcoin traded around $6,800. By December 2020, it had surged to $26,000. Investing the two stimulus checks during those periods would have yielded a total of about 0.1994 BTC.
At today’s market value, that amount of Bitcoin would be worth around $23,538. Although still impressive, this return falls short of XRP’s $31,000 outcome, confirming that XRP would have been the more lucrative option for investors during that period.
Timeless Investment Lessons from the Pros
Financial leaders have consistently emphasised the importance of seizing opportunities when they arise. Warren Buffett, the iconic chairman of Berkshire Hathaway, advises people to spend only what remains after saving, not the other way around. Bill Gross, co-founder of PIMCO, recommends keeping cash on hand for unexpected investment opportunities that may require additional capital.
The case of XRP exemplifies this philosophy perfectly. In a time of global uncertainty, someone willing to make a bold financial move would now enjoy exponential returns. The stimulus check, meant to offer short-term relief, could have become the seed for long-term financial growth.
Closing Thoughts
The COVID-19 stimulus checks gave millions a much-needed cushion during an unprecedented global crisis. But for the few who dared to think differently and chose to invest in XRP, those funds evolved into a small fortune. With a five-year return of over 1,600%, this example highlights the powerful intersection of timing, courage, and opportunity in the investment world.
Even though not everyone had the means or mindset to invest during a crisis, stories like this serve as a reminder that strategic investing, even in uncertain times, can lead to extraordinary outcomes.
