2022-11-22 22:15 |
El Salvador gives the wider crypto community something positive to cheer for as it pledges to stack up one Bitcoin (BTC) every day to beef up its holding.
El Salvador’s president Nayib Bukele says the current BTC price will not affect the country’s decision to accumulate more assets. He disclosed via Twitter that the country would be buying 1 BTC each day without concerning itself with the price of the asset.
“We are buying one Bitcoin every day starting tomorrow,” Bukele announced. It is unclear how long the new buying strategy will last but pundits believe that it could run for as long as the price of BTC is under $25,000.
At the moment, BTC is trading at around $16,000, having a 52-week low of $15,682 back in October. The strategy adopted by El Salvador has been termed a variation of the dollar cost averaging (DCA) which involves investing in an asset at regular intervals over a certain amount of time, regardless of the price.
El Salvador elevated Bitcoin to legal tender in 2021, and over a one-year window, it had amassed a stash of 2,381 BTC. According to the data, each BTC purchased by El Salvador was bought at an average price of $43,000, essentially putting the venture in deep losses.
The steep decline of BTC has dimmed the lights for the central American country that hoped to use the asset as a way out of its economic challenges. However, the new buying spree is a sign that Bukele has not lost hope in Bitcoin and that ‘buying the dip’ might reverse the fortunes of its faltering foray into the asset.
Justin Sun wants in tooTron’s founder Justin Sun seized the moment also to announce similar plans to purchase one Bitcoin per day. The purchased Bitcoins will be held with the decentralized autonomous organization created around Tron, TronDAO Reserve.
“We echo Nayin Bukele’s initiative in buying Bitcoin daily. We will also buy one Bitcoin every day starting tomorrow!” said Sun.
The DAO has accumulated BTC in the past splurging millions of dollars which it says is “to safeguard the overall blockchain industry and crypto market.”
The decision of the two entities to stack more BTC failed to trigger a rally for the asset as the broader virtual currency market roiled under the news of FTX’s catastrophic collapse.
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