Nayib Bukele, the president of El Salvador who owns Bitcoin, and Justin Sun, the creator of the Tron cryptocurrency network and the ambassador of Grenada, have chosen to purchase one Bitcoin every day starting from tomorrow.
Dollar-cost averaging (DCA) is a method of buying Bitcoin on a regular timetable as opposed to in response to market fluctuations. The benefit of DCA is that it takes the emotion out of the decision-making process, which results in you spending less money overall than you would if you tried to time the market.
The recent failure of Sam Bankman-Fried’s cryptocurrency exchange FTX has the potential to prolong the current bear market, which is why Bukele and Sun have chosen to use the DCA technique.
Analysts are concerned that Bitcoin, which has already lost 76% of its value since reaching a record high of $69,000 a year ago, may decline below $13,000.
In June of last year, El Salvador declared Bitcoin to be legal cash in hopes that it would aid in resolving the nation’s persistent economic problems. Since then, the debt-ridden country has purportedly paid an average of $43,000 for 2,381 BTC.
As collateral for its dollar-pegged stablecoin USDD, Sun’s Tron DAO Reserve, a community-focused organization that promotes development on the Tron network, has bought millions in Bitcoin, Tron’s native token (TRX), and Tether (USDT).