The president of El Salvador, Nayib Bukele, has decided to buy one Bitcoin a day, asserting his undying faith in the digital currency.
Bukele, popularly known as a staunch Bitcoin proponent, later shared how he is unfazed by the recent FTX turmoil, stressing the fact that the crypto sector is still in its nascent stage.
El Salvador adopted Bitcoin as legal tender in 2021 and since then has been steadily accumulating Bitcoin in efforts to boost the country's economic prospects.
Justin Sun and Nayib Bukele vow to purchase one Bitcoin a day
Nayib Bukele, the president of El Salvador, took to Twitter to announce his new plan. Bukele shared how he will be purchasing one bitcoin a day starting today.
Bukele tweeted:
"We are buying one #Bitcoin every day starting tomorrow.
After Bukele's announcement, Tron crypto founder Justin Sun tweeted a similar statement, sharing he would also be moving forward with plans to purchase one bitcoin a day.
Bukele and Sun's plan seems to be inspired by DCA (dollar cost averaging). DCA can be done by investing in stocks, funds, or crypto at regular intervals to spread out purchases.
The strategy is usually implemented by investors to lower their average cost per share and reduce the impact of volatility on their portfolios.
The ongoing bear market, coupled with the recent FTX collapse, has led several cryptocurrencies, including Bitcoin, to plunge to new lows. At the time of writing, BTC is trading at $16,73, while Ethereum is trading at $1,274.
Bukele had also tweeted earlier how he is undeterred by the recent FTX-Alameda collapse.
He later shared how FTX is the opposite of Bitcoin and its protocol was developed especially to prevent "Ponzi schemes and bank runoffs."
El Salvador's president has attracted significant public scrutiny in recent years due to his growing favouritism towards Bitcoin.
The International Monetary Fund had warned El Salvador about making Bitcoin a legal tender, claiming that the decision may impact El Salvador's economic prospects.
The country later dismissed the IMF's warning and went ahead with its decision to cultivate a holistic Bitcoin-inspired financial ecosystem. At present, the nation holds nearly 2,381 bitcoins in its official reserves.
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