16 November 2023
It’s officially been one year since the nation of El Salvador became the first to begin buying Bitcoin every day, joining the millions of savers around the world who dollar cost average into the cryptocurrency.
As profiled by Bitcoin Historian Pete Rizzo today, it was on this date last year when El Salvador’s President Nayib Bukele committed to purchasing one bitcoin every day. One year later, the results are in, Bitcoin is up 120%.
While it is unclear whether El Salvador stuck to the plan, if it has, it has amassed a total of 365 bitcoins at a reported cost of $13 million during that time. However, the cost basis for these acquisitions is notably lower at $9.5 million, or a $3 million gain.
The results showcase the potential benefits of consistent and measured investment in the volatile Bitcoin market.
Time will tell if the results will silence critics, however, who have been critical of the country’s strategy. El Salvador has faced scrutiny for its Bitcoin purchasing efforts, with skepticism arising from the lack of transparency regarding the actual purchases. While President Bukele has publicly disclosed the ownership of 2,381 bitcoins acquired at an average price of around $44,300, there remains a challenge in verifying these claims.
As a result, El Salvador may, at least temporarily, still be down on its overall Bitcoin investment. The country became the first in the world to make Bitcoin legal tender in September 2021, a move that has boosted tourism but drawn the scrutiny of international regulators who fear it is moving away from the U.S. dollar.
As the nation continues to navigate this uncharted territory, the impact of its pioneering DCA plan, should it have followed through on the promise, will no doubt go a long way toward mitigating concerns given its strong performance.