If you don't have an emergency funds to take care of emergencies that might arise, you will not survive in your bitcoin journey, because you will sell when you don't want to sell because of some unforseen challenges. Reserve funds are for backing up our emergency fund so that we only touch our emergency funds when a real emergency occurs.
Exactly!!! A mistake that a lot of newbie investors make is to end up using some or all of their bitcoin investment as an emergency fund, and so when some emergency comes they consider that they are just going to draw "a bit" from their bitcoin investment and take care of any kind of "real world" expenses matters that may come about, and so part of the short-sightedness of such an approach is that bitcoin tends to be all over the place in terms of value, so that when the emergency ends up coming, it may well end up being at the exact worst time to be selling bitcoin or maybe if it is not exactly the worst time to sell bitcoin, it is not a good time to be selling bitcoin, so in those cases, a person may well have had been better off buying bitcoin rather than selling, but if they are suffering from an emergency, it may well be possible that their own poor cashflow management had ended up contributing to their creating an emergency situation for themselves...
There is a new world order on the arising and Bitcoin is a big player in that new world order. The shift on the societal plates isn’t one that vibrates the same for everyone to adjust with at its pace. Some might respond slowly while others a lot faster. This depends on how deep you are with the systems that once ran your life.
Someone like W. Buffet, one of the richest men by Forbes doesn’t really see much value in Bitcoin and the systems that backs its bankroll.
Therefore, you can imagine how they would ever tend to see Bitcoin for an asset. For all they know, it’s just some code online, designed by someone and it’s been used or maintained by many on the blockchain technology,,, maybe am not putting this in its best ways but yack, how the hell do they value such.
It comes to the question of how someone truly values a thing. While you might see value in one thing, someone some place else wouldn’t. Even in the real estate business, you don’t get to value the same house and property the same. Neither would you see some property what acquiring at a price.
But, we are talking about asset here and asset should be defined by its qualities and not the feel about it. That’s just an aspect of a human’s sensation and not all of that are the touch feeling or having to see them.
Assets can also exists in the digital realms. Bitcoin is as much an asset as the many of them properties out there, it’s qualities should be the qualifier.