Salvadoran President Nayib Bukele and Tron cryptocurrency founder Justin Sun decided to accumulate bitcoin at the rate of 1 BTC per day. The price of bitcoin has risen more than 5% in the past week, according to Quinceko The data.
On Wednesday, the Salvadoran president tweeted: “We are buying a #Bitcoin every day starting tomorrow.”
The announcement was followed by Tron founder Justin Sun who pledged to emulate Bukele’s accumulation strategy.
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Blue chips on top of the cryptocurrency market have risen in value over the past week.
The President of El Salvador has responded to the current crypto market rout by pledging to buy Bitcoin daily.
Cryptocurrency found Justin Sun responded to the Tweeter and said, “We echo Nayib Bukele’s initiative to buy bitcoin daily. We will also buy one bitcoin daily starting tomorrow!”
Bitcoin pioneer Max Kieser tweeted about the importance of the Salvadoran President’s new strategy.
Keizer said: “I witnessed the composition and publication of this tweet by Nayib Bukele. Imagine being present at the signing of the declaration of independence in 1776. Salvadorans and the world are so lucky to live in the era of this political visionary and monetary freedom fighter.”
The strategy employed by Bukele and Sun is commonly referred to as dollar cost averaging.
This describes the steady and consistent accumulation of an asset regardless of market conditions.
The recent collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange threatens to prolong the crypto bear market.
Bitcoin is already down 76% since hitting a record high of $69,000 this time last year.
El Salvador announced bitcoin as legal tender in June 2021 in hopes the cryptocurrency would help solve long-standing economic problems.
Since then, the Central American country has been buying bitcoin at an average price of $43,000, the current price is slightly above $16,500.
So far, El Salvador has accumulated around 2,381 bitcoins, which is a considerable bet for a developing country that the high-risk asset will appreciate in the long term.
USDD’s collateral consists of 14,040.6 BTC and it is described by its founder as “the most stable, decentralized, tamper-proof and freeze-free stablecoin system”.
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