El Salvador's President Nayib Bukele and Tron's Justin Sun to Buy One Bitcoin Every Day
Bukele and Sun commit to buy one BTC every day, starting from Thursday amid fears that crypto exchange FTX's recent collapse would prolong the ongoing crypto winter.
Bitcoin-holder El Salvador President Nayib Bukele and Justin Sun, the founder of the Tron cryptocurrency network and Grenada's ambassador, have decided to accumulate bitcoin at a pace of 1 BTC per day.
"We are buying one #Bitcoin every day starting tomorrow," Bukele tweeted late Wednesday. Soon after, Sun announced a similar plan, mimicking Bukele's accumulation strategy.
The strategy of purchasing bitcoin on a set schedule instead in reaction to market movements is known as dollar cost averaging (DCA). The advantage of DCA is that it removes the emotional component of decision-making and you end up paying less in dollar terms for the investment over the long run than you would spend while timing the market.
Bukele and Sun's decision to employ the DCA strategy comes as the recent collapse of Sam Bankman Fried's cryptocurrency exchange FTX threatens to prolong the crypto bear market. Analysts are worried that bitcoin could slide to $13,000, having already lost 76% since hitting a record high of $69,000 a year ago.
El Salvador announced bitcoin as legal tender in June last year in hopes that the cryptocurrency would help solve long-standing economic issues. Since then the debt-riddled nation has purchased 2,381 BTC supposedly at an average price of $43,000 .
Sun's Tron DAO Reserve, a community-focused body that supports development on the Tron network, has acquired millions in BTC, Tron's native token TRX and tether (USDT) as collateral backing its dollar-pegged stablecoin USDD. At press time, the collateral backing USDD included 14,040.6 BTC, 240 million USDT, 442,323,460, and 954 million TRX.
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