El Salvador’s President Nayib Bukele declared late yesterday evening that the nation purchased the dip for an average cost of $19,000 with an additional 80 BTC added to the public treasury.
El Salvador bought today 80 #BTC at $19,000 each!#Bitcoin is the future!
Thank you for selling cheap ? pic.twitter.com/ZHwr0Ln1Ze
— Nayib Bukele (@nayibbukele) July 1, 2022
El Salvador now holds 2,381 BTC in its total Bitcoin treasury, which is worth roughly $46.1 million. Since buying its first 200 BTC on September 6, 2021, the nation-state has been steadily acquiring Bitcoin. Three months after declaring bitcoin to be legal tender, this made it the first nation in the world to have Bitcoin on its financial sheet.
A phenomenon known as a “contagion” has recently been observed in Bitcoin and the larger cryptocurrency ecosystem, in which cascading failures of one institution have spilled into another amid market corrections. As a result, institutional and national-state holders of significant amounts of bitcoin in the ecosystem came under fire for maintaining their holdings despite the situation. El Salvador was one of the criticized holders.
Similar to this, Michael Saylor was asked if he regretted the Bitcoin strategy his software analytics company, MicroStrategy, decided to follow. However, in the same vein as Bukele, Saylor keeps investing in dips and adheres steadfastly to the principle of dollar-cost averaging, which calls for gradual asset accumulation over time regardless of price.
Influential individuals like Bukele and Saylor will continue to draw criticism as long as they continue to amass substantial quantities of bitcoin over time. The crucial point to remember is that they are not trading bitcoin. Sure, critique the poor timing if the goal was to buy and sell bitcoin in a little period. But as things stand, MicroStrategy and El Salvador are continuing to view things through a longer time horizon than is typically the case.
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