Post
Topic
Board Speculation
Merits 3 from 2 users
Re: Buy every dip!
by
Shadiq
on 28/12/2024, 16:06:53 UTC
⭐ Merited by Olatundespo (2) ,JayJuanGee (1)
At this point you can divert the percentage of income set aside for emergency funds into Bitcoin accumulation to increase your aggressiveness having already built out your emergency funds to a feasible extent.
I disagree with you. Are you talking about trading with your emergency fund? That would not be a good move at all. Emergency funds should always be stored in stable coins or you can store them in fiat. You never know when your emergency is going to come and you never know whether your emergency fund stored in Bitcoin will be profitable or at a loss. If your emergency fund is at a loss, will you be happy with Bitcoin? Or will you accept that loss? Or why would you plan for a high probability of loss?

Bitcoin is a profitable investment for the long term. If you trade or plan for the opposite direction with Bitcoin, you may have to see the reverse side of the currency (loss). Bitcoin is volatile and its price is unpredictable. Similarly, emergencies are unpredictable. The possibility of profiting from Bitcoin in the long term is highest and the possibility of loss is very low. But Bitcoin may not be able to make you happy for an uncertain time.

The biggest reason to keep your emergency fund in a stable currency is the possibility of loss and the time it takes to convert Bitcoin to fiat, which can put you off spending money in an emergency. Fiat or stable coins will be easily exchangeable in your region and there is no possibility of loss. That is why preparing an emergency fund in a stable currency is the safest and most easily exchangeable. Therefore, preparing an emergency fund in Bitcoin may prove to be a wrong move in order to be aggressive in investing.