El Salvador’s Bitcoin Strategy: Dollar-Cost Averaging and Stacking Sats
El Salvador continues to buy bitcoin, even as central banks are buying gold at record levels.
The country’s president, Nayib Bukele, has adopted a dollar-cost averaging strategy, which involves buying bitcoin regularly, regardless of the price.
This strategy has proven successful, with El Salvador’s bitcoin portfolio seeing significant gains since it began buying bitcoin in 2021.
El Salvador’s Bitcoin Purchases
- El Salvador began buying bitcoin in September 2021, shortly after bitcoin became legal tender in the country.
- The government purchased 2,381 bitcoin at an average price of $44,145.
- Since then, El Salvador has continued to buy bitcoin, and its portfolio has grown significantly.
- The country has acquired 3,035 BTC for $131.02 million since September 2021, at an average price of $43,169.
Benefits of Dollar-Cost Averaging
- Dollar-cost averaging can help reduce risk by spreading out purchases over time.
- It can also help investors to buy more bitcoin when prices are low and less when prices are high.
El Salvador’s bitcoin strategy has attracted both praise and criticism. Some argue that the country is taking on too much risk by investing in bitcoin, while others believe that the strategy could pay off in the long run. Only time will tell how El Salvador’s bitcoin experiment will play out.
**Learn More:**
* **Bitcoin (BTC):** [https://bitcoin.org/](https://bitcoin.org/)
* **El Salvador:** [https://www.elsalvador.gob.sv/](https://www.elsalvador.gob.sv/)
