- According to a profile by Bitcoin Historian Pete Rizzo today, it’s been exactly one year since El Salvador’s President Nayib Bukele decided to buy one Bitcoin every day.
- Although it’s uncertain whether El Salvador continued this strategy, if they did, they should have accumulated 365 Bitcoin during this time.
- Bukele claimed to own 2,381 Bitcoins acquired at an average price of around $44,300, but there is difficulty verifying these claims.
After El Salvador’s decision to buy 1 BTC every day following their Bitcoin move in 2021, what is the current situation?
Is El Salvador’s Decision a Profitable Investment?
It’s officially been one year since El Salvador, joining the strategy of ‘dollar-cost averaging,’ a method of regularly investing in cryptocurrency that millions of savers worldwide follow, started buying Bitcoin every day after their Bitcoin preference in 2021.
According to a profile by Bitcoin Historian Pete Rizzo today, it’s been exactly one year since El Salvador’s President Nayib Bukele decided to buy one Bitcoin every day. One year later, the results are in, and Bitcoin has gained 120%.
Although it’s uncertain whether El Salvador continued this strategy, if they did, they should have accumulated 365 Bitcoin during this time, and the cost of these purchases is reported to be $13 million. However, the cost basis of these purchases is significantly low, i.e., $9.5 million, resulting in a $3 million profit. The results indicate the potential benefits of consistent and measured investment in the volatile Bitcoin market.
However, it’s still unclear whether the results will temporarily appease critics of the country’s strategy. El Salvador faced criticism for its Bitcoin purchase efforts and raised suspicions due to a lack of transparency regarding these purchases. President Bukele claimed to own 2,381 Bitcoins acquired at an average price of around $44,300, but there is difficulty verifying these claims. Therefore, there is still a possibility that El Salvador’s overall Bitcoin investment may be temporarily in the red.
El Salvador Boosts Tourism with Bitcoin
The country became the first in the world to declare Bitcoin a legal tender in September 2021, triggering a situation that increased tourism but also raised concerns as international regulators worried about moving away from the U.S. dollar.
As the country continues to progress in this uncharted territory, the impact of the pioneering DCA plan, if they implemented this strategy, will undoubtedly play a significant role in alleviating concerns due to its strong performance.
