The widespread repercussions of the COVID-19 pandemic resulted in devastating consequences for businesses and individuals alike. With closures, job losses, and economic uncertainty, the aftermath of the pandemic continues to be felt, leading to higher inflation and a tight job market.

To alleviate some of the financial burdens faced by individuals and families, the U.S. government issued multiple stimulus payments during the peak of the pandemic. These payments were intended to help people cope with rising costs and job losses, offering a lifeline during these challenging times.

Recipients of the stimulus checks were afforded the freedom to utilize the money as they saw fit, including the option to invest it, provided they didn't require it for essential expenses or savings.

In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted, which facilitated three rounds of stimulus payments to Americans. While some individuals chose to allocate the funds towards bills and bolstering their savings, others seized the opportunity to invest in stocks and cryptocurrencies.

The first stimulus payment under the CARES Act amounted to $1,200 for eligible adults, with an additional $500 for those with qualifying children. Subsequently, the Tax Relief Act of 2020 disbursed an extra $600 per eligible adult, along with up to $600 for those with qualifying children, in December 2020. Lastly, the American Rescue Act of 2021 provided an additional $1,400 payment to eligible adults, with up to $1,400 for those with qualifying children.

Let's take a closer look at the potential returns one would have garnered had they invested their stimulus checks ($1,200, $600, and $1,400) into three prominent cryptocurrencies: Bitcoin (BTC/USD), Dogecoin (DOGE/USD), and Ethereum (ETH/USD).

Bitcoin Investment: Investing a portion of the stimulus checks in Bitcoin proved to be a popular choice for many investors, seeking to safeguard a portion of their payment outside of the control of the U.S. government.

On April 11, 2020, Bitcoin was valued at $6,926. By December 29, 2020, the price had surged to $27,370, and on March 12, 2021, it reached an impressive $57,996. If an individual had invested the entire $3,200 from their stimulus checks into Bitcoin, they would have been able to purchase a total of 0.219 BTC.

Considering the current Bitcoin price of $27,719.72, that initial $3,200 investment would now be worth $6,070.62.

Dogecoin Investment: The meme-inspired cryptocurrency, Dogecoin, experienced a surge in interest and value in 2021, primarily due to the enthusiastic support of retail investors and notable figures like Mark Cuban and Elon Musk. Let's explore how stimulus checks invested in Dogecoin would have fared.

On April 11, 2020, Dogecoin traded at $0.0020. By December 29, 2020, the price had risen to $0.0046, and on March 12, 2021, it reached $0.0570. If someone had invested the entire $3,200 stimulus checks in Dogecoin, they would have acquired approximately 754,996 DOGE.

With the current Dogecoin price at $0.07243, that initial $3,200 investment would now be worth a remarkable $56,043.35.

Ethereum Investment: Ethereum, one of the fastest-growing cryptocurrencies in 2021, witnessed substantial growth, primarily driven by its association with non-fungible tokens (NFTs). Let's analyze the outcome if stimulus checks were invested in this second-largest cryptocurrency.

On April 11, 2020, Ethereum was valued at $161.17. By December 29, 2020, the price had surged to $737.95, and on March 12, 2021, it reached $1,839.50. If an individual had invested the entire $3,200 into Ethereum, they would have acquired approximately 9.02 ETH.

Considering Ethereum's current price of $1,905.18, that initial $3,200 investment would now be valued at $17,184.72.

Investment in All Three Cryptocurrencies: A diversified approach would involve investing in Bitcoin, Dogecoin, and Ethereum. By splitting the $3,200 equally among these three cryptocurrencies on the respective stimulus payout days, an investor would have obtained 0.0731 BTC, 251,665 DOGE, and 3 ETH. Today, this combined investment would be worth $25,969.95, assuming equal investments from all three stimulus checks.