Quote from: Samlucky O on Today at 06:12:11 AM

Quote from: Neobanks on Today at 03:35:44 AM

[edited out]

I think you are misinterpreting the concept of this emergency fund. just like my explanation of keeping emergency fund just like we DCA does mean if the accumulated emergency fund is large enough that you can't use part to invest on bitcoin. Just as you said that if the accumulated emergency fund is upto $150k you can invest part of it to bitcoin, you are actually right about that. You know different people and how they do things, some people might also use part of the emergency fund for doing other things like buying necessarily items at home or using it to build house. Emergency fund may mean an amount set aside as a savings in the bank or you can call it whatever you like. I think calling it emergency fund does not necessarily mean it is only set aside for emergency. It can can also be use to settle other important things of our life. Emergency is a word use as an alternative fund when you cant touch neither your bitcoin HODLing or your family spending. It is at the middle. You can use it for anything that please you but the main thing is that it must not be empty. I think that is what the notion of emergency fund is talking about. If my explanation is not following the rules I think JJG would be in right position to educate us better.

You are correct that Neobanks does not seem to understand the concept of emergency funds, reserve funds, float and/or the reasons for maintaining a financial cushion.. and Winterfrost also addressed the issue pretty well in his responsive post.

Of course, we can call our various kinds of extra funds and/or our financial cushion whatever we like, yet we might end up getting into trouble if we are being too loosey goosey with various kinds of funds and financial cushions that we attempt to maintain and what kinds of financial cushions become even more important when we are invested into something as volatile as bitcoin.

Part of the reason that we establish various kinds of financial cushions is so that we never have to dip into our BTC at any time other than our own choosing, which surely might be 4-10 years down the road, and if we do not have a sufficient financial cushion, then we may well end up using our BTC investment as our emergency fund, which seems to be a bad way of going about trying to become more financially secure and with more financial options.

Some people become more sloppy merely because their BTC are in profits, so all of a sudden they start to consider that they could tap into their BTC or that they do not need an emergency fund, and if shit hits the fan, they could just sell some of their BTC to take care of matters, and sure that is going to work and they are going to make profits, but they also might end up selling way too many bitcoin too soon and never being able to replace the BTC that they sold at a time that was not really of their own choosing, but instead was at a time that they were forced into because they failed/refused to adequately maintain a financial cushion, whether it is called an emergency fund, reserves and/or cash floats.

Many times various aspects of reserves and/or an emergency fund is going to feel like it is not sufficiently working because it is just sitting there for years and years and years and not doing anything and not earning any yield, and yeah that is part of the costs of having those kinds of extra funds available so that you do not have to touch your bitcoin.. and sure if you get to the point that you have several years of value that is built up, you may well have some of your emergency funds as working capital, yet there would likely be different kinds of investments that you have, and you still may well want to draw from the least valuable asset first, even if bitcoin might be the most liquid.. which again gets back to the value of cash in terms of it being very liquid, when it might take a bit of time to get in and out of some other kinds of investments whether stocks, commodities, property, bonds or cash equivalents.

3-6 months of an emergency fund is a good general framework that is always maintained and only used for emergencies, and the reason that it is always able to be maintained is because you will also have other funds, such as reserve funds that you can spend from and if you happen to spend from some of your emergency funds, then you work towards immediately replenishing those funds to be prepared for if an actual emergency comes after you had spent from those emergency funds.

Quote from: Winterfrost on Today at 06:37:06 AM

Quote from: Neobanks on Today at 03:35:44 AM

For instance, if there is a total some of $150k save as emergency fund to help tackle emergency challenges, a good investor and business oriented minded person can use part of this money to accumulate Bitcoin using DCA strategies for a long term investment and then be accruing the profit of the investment to emergency challenges and within little time in the near future there may be a reasonable rate of return from the little investment made from emergency fund.

maybe you're getting somany things twisted here and it's possible you don't know the value of the figure you're putting out here.
For clarity, 1BTC at the moment is just $61k and if we do our little maths, with that $150k you are looking at using for emergency fund, you can starch at least 2BTC and still have $28k left. Except you're a extremely rich, using $150k as an emergency fund doesn't look wise at all, I mean, how much have you starched up before having such reserve that's going up for emergency fund? Let's be realistic sometimes.

Yeah, people make silly claims, and so sometimes it can be difficult to figure out what they are talking about.

Instead of talking in exact numbers, it frequently can be better to have some kind of a base that might be described in terms of months or even years of annual salary/expenses.

So if someone makes $50k per year, and maybe he had $36k per year of expenses, so then he has around $14k per year of disposable income that would be eligible for investing and/or building his emergency fund... and even a guy with $36k of annual expenses might have $18k in an emergency fund (that is 6 months of expenses), or some guys will have a whole year of an emergency fund, but maybe half of that might be considered an emergency fund and the other half might be considered reserves.. especially since emergency fund would be an amount in which he would never go below absent an actual emergency, which frequently guys want their capital to be working and so sometimes they are willing to let their emergency funds go down as low as 3 months, since it can sometimes seem to be a bit of an overkill to have too many funds that are just sitting out there unless they are specified for something like for buying on dips or to be able to quickly take advantage of financial opportunties, and emergency funds are not to be used for those kinds of things. .but reserves and/or floats can be used for such purposes...

and in the end each guy has to figure out his own comfort levels that also might have to do with the complications of his cashflow, expenses and various investments that he might already have or be thinking about getting into.

Quote from: Stablexcoin on Today at 07:08:06 AM

Quote from: I_Anime on Today at 01:03:58 AM

Quote from: Stablexcoin on March 19, 2024, 11:11:28 PM

Am not surprised that the price has dropped drastically within 24 hours and so have so many investors rather i am excited because bitcoin had gave me a better opportunity to buy at a cheaper price than I expected. Since i am dcaing i don't really care about the price which i would have bought at 72k but buying at 62k. What a difference, has helped me gain more like am buying at the dip. This is one good opportunity for new investor so that before the next ATH they would be glad they had bought below the previous ATH

Exactly, deep down I didn't wanted bitcoin to hit $80k fast before the halving, so that would be able to purchase more as the price still which will give me some good quantities than buying when the price high.

Historically speaking there is always a dip before halving and then new ATH. Like I said before we can't see the green weeks forever, irrespective that we have endured several years sleeping on the red candle as an investor. Indirectly buddy you tried to time the market waiting for the price to go down so that you will buy at a cheaper. Luckily for you, it worked but what if it didn't?

Quote from: Oasisman on Today at 03:17:39 AM

Why not? isn't a good thing for the crypto market if bitcoin were able to hit $80k faster? I mean, If you truly been DCAing since, you won't gonna be worried whether bitcoin pulls back a little bit to make another buy or not. It is true that every bitcoin correction could be a good opportunity to buy more, but everyone who have been DCAing might as well be ready during bull market and not gonna be worried or FOMO because they have been too ready for it to happen. So, people who've made a good bag only wish nothing but for bitcoin to hit 6 digit mark the sooner the better.
We all know that when bitcoin halving comes it's gonna be a good time to reap what we sow at some point during bullrun, so I assume you've made enough bag while DCAing, but nevertheless, $62k at current price is still somehow a good buy as well.

When it was 72k and now at 62k or 61k. It has been a good time to buy Bitcoin. We are likely to see predictable corrections where the price drops before continuing to go up. It is in Bitcoin's nature to not just move so smoothly and consistently hence retaining its reputation for being volatile. So, we should not expect Bitcoin to go straight to the moon instead we should be expecting to see curved candles that we may think the forward movement is over. Long-term investors are not concerned about what is happening now only the weak hands are being threatened by the current market state most of them will lose confidence and sell while some will resist the temptation, it is a personal choice to choose which we will fall under.

Cited for the visibility of your chart.. yet I am not sure from where you got that chart.. Maybe you should provide a source for it.. It seems like it might be a chart from more than 3 months ago.