Polkadot community split on selling 500K DOT for Bitcoin reserve
The Polkadot community is currently divided over a proposal to convert 500,000 DOT tokens into Threshold Bitcoin (tBTC) using a dollar-cost averaging strategy over a year. Proponents argue that holding Bitcoin may serve as a hedge against the ongoing market volatility, especially considering Bitcoin's strength as DOT's value erodes. The proposal’s creator highlighted the importance of risk management rather than precise market timing. However, critics question the appropriateness of the timing given Bitcoin's current high price of over $100,000 while DOT struggles. They express concerns that this move might exacerbate DOT's price decline rather than stabilize it. Some community members advocate for a broader discussion on diversification beyond Bitcoin, which has also raised issues about governance and decision-making within the community. As discussions continue, a community vote will ultimately determine the outcome regarding the potential Bitcoin strategic reserve.
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