El Salvador's Bitcoin Investment Strategy: Daily Purchase And Long-Term Potential
JAKARTA - El Salvador, as one of the pioneers of crypto adoption, continues the "1 BTC per day" program by buying crypto consistently despite sluggish market conditions. According to data from BitInfoCharts, the country's crypto wallet address is active in purchasing 1 Bitcoin (BTC) every day since March, showing strategic accumulation efforts through government-run cold wallets.
This decision came after El Salvador's President, Nayib Bukele, announced the move in November 2022. Bukele in March confirmed that El Salvador will continue to buy 1 Bitcoin per day until a time when this purchase is no longer possible with fiat currency. This statement follows the President's confirmation in February that the country is currently not planning to sell its BTC reserves.
El Salvador has also reportedly mined 474 BTC in the last three years. Last month, the country announced plans to accelerate Bitcoin integration into its banking system by submitting a reform proposal aimed at allowing banks to carry out operations in BTC and US dollars.
"With the integration of Bitcoin into the banking system, a country not only shows courage in taking risks, but also provides new opportunities for financial inclusion. This reform can facilitate public access to more modern and efficient financial services. This is a bold and innovative step that can inspire other countries to follow in the same footsteps," said Oscar Darmawan, CEO of INDODAX, in his statement, Wednesday, July 10.
Oscar also said this step could be an example for other countries that want to strengthen their position in the crypto ecosystem.
"This also shows high confidence in Bitcoin's long-term potential as a digital asset," Oscar said.
Furthermore, Oscar stressed, this Bitcoin accumulation strategy can also serve as a formidable value reserve for the country. In the context of global economic uncertainty, having a Bitcoin reserve can provide better diversification for the national financial portfolio.
"This move not only strengthens El Salvador's position as a pioneer in crypto adoption, but can also be a strategic step for value protection in the long term," he explained.
SEE ALSO:
El Salvador's decision to continue to make purchases of its Bitcoins when the market is sluggish, said Oscar, demonstrates a strong commitment to its long-term strategy in adopting blockchain technology.
"This also has a positive impact on the growth of the crypto industry globally," Oscar added.
Investing by continuing to make purchases either when prices are up or down can be done using the Dollar Cost Averaging (DCA) technique. This technique involved buying the number of assets that remained on a regular basis, regardless of market prices at that time.
By conducting a DCA, investors can reduce the risk of market volatility as purchases are made at various price points, which in turn can lower the average purchase price. At INDODAX, we can invest in DCA techniques in routine investment features.