El Salvador will buy 1 bitcoin a day, Bukele announces

El Salvador’s president, Nayib Bukele, announced that the Central American country will purchase 1 bitcoin (BTC) per day. This is a new strategy of cryptocurrency accumulation by the first country in the world to adopt it as legal tender.

Through a brief tweetBukele commented on this new strategy in the early hours of Thursday, November 17. In a nutshell, he reported that that this would be the policy and that it would begin “tomorrow.”“.

Thus, the Central American country will resume its recurring purchase of BTC after a months-long hiatus in the midst of this bearish market. Bukele’s last reported coin purchase was last July, when he added 80 BTC to their portfolio at about $19,000 per unit.

Currently, El Salvador accumulates about 2,381 bitcoins, according to Bukele’s purchase trackers available on sites such as. nayibtracker.com. Such a portfolio, with an average purchase price per BTC of about $45,000is now in the red by more than 60 percent.

However, both Bukele and other local government spokesmen have downplayed the importance to the unrealized losses they are currently sustaining. Their commitment, they argue, is long-term and Volatility in the short term does not affect that accumulation strategy..

Justin Sun, founder of the blockchain Tron, answered to Bukele’s tweet stating that he wanted to do the same: buy one BTC a day. Meanwhile, other tweeters asked the president to to maintain El Salvador’s BTCs in cold wallets or even Celebrated its bitcoiner policy despite the criticism by such bodies as the International Monetary Fund.

Bukele’s DCA Strategy

Bukele’s strategy of recurring purchases, now reinforced with the announcement of 1 BTC per day, can be seen as a way to accumulate more coins regardless of the purchase price. This mechanism, which seeks to eliminate daily volatility in the face of a long-term strategy., is known as DCA (Average dollar cost)as discussed in the Cryptopedia available on CryptoNews.

If this bearish market continues and the price of BTC remains below Bukele’s average purchases, this policy would help him accumulate bitcoin at lower prices, such as encouraged him to to make bitcoiners a few months ago. In this way, his average would gradually decline ahead of the next bull cycle, when his portfolio would return to profitability.