Earlier today, the President of El Salvador, Nayib Bukele announced on Twitter, “We are buying one #Bitcoin every day starting tomorrow.” El Salvador is the first country in the world that adopted Bitcoin (BTC) as a legal tender. Although they have lost $60 million in their BTC experiment by October, the vision has not changed. Guess what? Tron’s Justin Sun echoed Bukele’s strategy the same day.
Interestingly, the founder of Tron, and Huobi global advisor – Justin Sun, quickly followed the tweet from Nayib Bukele and said his project will buy one BTC per day as well. The accumulation strategy shows some people are still very confident in BTC in the ongoing crypto winter. Do you consider buying more Bitcoin?
The country celebrated their one-year BTC adoption as a legal tender not too long ago in September. With the announcement, we can see that El Salvador is still pro-Bitcoin, and believe it is a better currency to hedge against inflation. Curious how many BTC they have? The small country located in Central America has 2,381 BTC accumulated so far, according to a report on CryptoPotato.
Instead of buying a large amount of BTC at once, Bukele and Sun will use dollar cost averaging strategy (DCA) instead. The benefit of DCA is that it takes emotion out of the decision-making process, which results in you spending less money overall than you would if you tried to time the market, which is difficult for most people who are not professional traders.
Closing Thoughts
The recent failure of Sam Bankman Fried’s bitcoin exchange FTX has the potential to prolong the current bear market in cryptocurrencies, which is why Nayib Bukele and Justin Sun have chosen to use the DCA technique.
This is the strategy I personally use, which allows me to not to worry about the market as much. What is your investing strategy? Are you a HODL on Bitcoin? Anyways, don’t forget to read our daily industry news to stay tuned in the market. Interesting in trading? We offer Bitcoin and more cryptocurrency on MEXC!
