Analyst: If Americans invest future stimulus checks in Bitcoin on a large scale, it may be a disaster

According to Forbes, earlier this year, the economic stimulus package helped millions of Americans make ends meet, but Democrats and Republicans have had difficulty agreeing on the terms of a second stimulus package, and there may not be one at all. Now that the debate over the possibility of a second round of stimulus checks is raging, a Bitcoin analyst has studied what would happen if people collectively used stimulus checks to invest in Bitcoin, and warned that it could be a "disaster."

Jason Deane, an analyst at financial firm Quantum Economics, conducted a "theoretical study" of what would happen if millions of Americans decided to put their future stimulus checks into Bitcoin. He wrote, "The bottom line is that Bitcoin is simply not prepared for this scenario. The network is the most secure in the world, but it is nowhere near ready to handle the level of transactions required to function properly on a global scale, and too few people are currently using it."

Millions of people around the world are using Bitcoin and other cryptocurrencies. Blockchain.com reported 45 million users at the beginning of 2020, up 41% year-on-year, but Deane warned that a sudden influx of new users would cause the Bitcoin network to collapse. "The end result of buying Bitcoin on a large scale at a faster pace than the infrastructure can support could be a disaster not only for the economy, but also for Bitcoin and all cryptocurrencies."