El Salvador's Nayib Bukele buy 1 BTC daily
Zach Anderson Nov 16, 2022 16:00
El Salvador's President Nayib Bukele and Grenada's ambassador Justin Sun have decided to accumulate 1 BTC per day. Analysts are worried that bitcoin could slide to $13,000, having already lost 76% since hitting a record high of $69,000.
Both the President of El Salvador, Nayib Bukele, and Justin Sun, the creator of Tron and the Ambassador of Grenada, are amassing one Bitcoin (BTC) daily.
According to a tweet posted by Bukele, "Starting tomorrow, we will acquire one #Bitcoin a day." Soon enough, Sun began to accumulate things in the same way that Bukele did.
The term "dollar cost averaging" refers to purchasing bitcoin on a predetermined schedule rather than responding to fluctuations in the price (DCA). DCA removes the element of emotion from decision-making and, compared to market timing, results in lower overall expenses for long-term investments.
The decision by Bukele and Sun to adopt DCA comes at the same time as the failure of Sam Bankman Fried's bitcoin exchange FTX. After a decline of 76% from reaching a high of $69,000 a year ago, analysts are concerned that the price of bitcoin might drop below $13,000.
In June 2017, El Salvador declared bitcoin a legitimate currency in the hopes that doing so would alleviate the country's economic challenges. Since then, the cash-strapped nation is said to have acquired 2,381 BTC for the equivalent of $43,000.
As a form of collateral for its dollar-pegged stablecoin USDD, Sun's Tron DAO Reserve has purchased millions of dollars worth of bitcoin (BTC), Tron's native token (TRX), and tether (USDT). At the time of the press, there were 14,040.6 BTC, 240 million USDT, 442,323,460, and 954 million TRX-backed USD.
Image source: Shutterstock