El Salvador Resorts to DCA as Bitcoin Investment Down 60%+

El Salvador’s President Nayib Bukele has pledged to buy Bitcoin at a pace of one coin per day starting Friday, November 8, Tokenistcom reported. The move comes as the flagship cryptocurrency has tumbled to two-year lows amid the recent collapse of cryptocurrency exchange FTX. In a Thursday tweet, President Nayib Bukele announced that they will start buying one BTC per day. “We are buying one Bitcoin every day starting tomorrow,” he said. However, the Bitcoin bull did not identify a cap for how many BTC coins he plans to acquire or for how long they will stick to the strategy. The strategy of purchasing an asset at regular intervals, regardless of its price performance, is known as dollar cost averaging (DCA). 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. As reported, El Salvador adopted Bitcoin as a legal tender in June 2021, becoming the first country in the world to do so. The country has also directly invested millions in Bitcoin since September 2021, when it started acquiring BTC. Read more.
Location