El Salvador President Says Country Will Buy ‘One Bitcoin Every Day’, Billionaire Justin Sun Joins Him
In a bid to exploit the recent crypto meltdown, El Salvador’s President Nayib Bukele and Tron Founder Justin Sun plan to Bitcoin at a pace of one coin per day starting today.
In a Thursday tweet, President Nayib Bukele announced the news, pledging to acquire one BTC per day starting Friday, November 8. “We are buying one Bitcoin every day starting tomorrow,” he said.
In response, billionaire Justin Sun revealed that he will also join Bukele in acquiring BTC. "We echo Nayib Bukele’s initiative in buying Bitcoin daily. We will also buy one Bitcoin every day starting tomorrow!"
The strategy to acquire BTC at regular intervals, regardless of its price performance, is called dollar cost averaging (DCA). In short, DCA is an investment strategy that aims to apply value investing principles to regular investment.
One specific advantage of the practice is that it removes the emotional component of decision-making and minimizes the impact of volatility, thus reducing investment risk while allowing investors to end up paying less in dollar terms for the investment.
Notably, both Bukele and Sun did not identify a cap for how many BTC coins they would acquire or for how long they might stick to the strategy.
Bukele's move to acquire more BTC should not come as a surprise. Over the past month, he has evolved to become a full-fledged Bitcoin enthusiast. His country, which adopted Bitcoin as a legal tender in June 2021, has also directly invested millions in the coin.
As per public records, El Salvador currently holds 2,381 BTC purchased at an average buying price of $43,357. With Bitcoin currently trading around the $16,500 mark, El Salvador’s BTC holdings are worth $39.4 million. Since the country has spent nearly $103.23 million on its BTC
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