A rich man must not save or keep emergency funds down when investing in bitcoin like an average or low income earner. This is because his financial strength is very strong and he has several streams of income in which he can take from any of them to sort out an emergency when it occurs and it will not affect him at all, because he has the luxury to tap funds from any of his investments or business. Such person has overcome the challenges of an unforeseen circumstances that will occur in future.
Yes, you are absolutely right. If you always have several times the amount of your entire backup fund readily available, then why would you need to create a separate fund? If you have a special ability to leap across a river, why would you spend time building a boat? A wealthy person has multiple options to handle emergencies; they can gather funds from various sources when needed. So, why would they spend time creating a separate emergency fund?An emergency fund is essential for those who lack the financial resources to combat urgent situations or whose leftover income after meeting daily needs is not sufficient to both invest and handle emergencies. A wealthy individual earns enough to meet their needs while also having excess funds to invest, leaving them with a significant surplus. However, a poor or middle-class individual often spends most of their earnings on daily necessities. While they may have some money left for dollar-cost averaging (DCA) and even setting aside a backup fund, they usually cannot retain enough for major emergencies.
For such individuals, having at least one emergency fund is a fundamental necessity. It would be a mistake to generalize the same financial strategy for everyone.
It seems a bit strange why we might be spending a lot of time comparing the cashflow management practices and/or obstacles of the rich and the poor. Surely the rich are going to have more likely sources of income and a lot more options, yet they could also deplete their options if they engage in poor cashflow management practices, and even within the rich there are differing levels in terms of the kinds of income that they have, and some rich folks might be dependent upon work income and others might be dependent upon income from their investments, and so there can be challenges and mistakes that any of them could make if they are potentially spending beyond their discretionary income or if they might be contributing to their own sudden increases in expenses or making losses in investment in ways that they have to get cash to cover their losses.
So, even though a lot of similar principles will apply, by definition rich people have more options, and poor people are likely trying to build up their investment and strengthen their cashflow management practices in order to give themselves more options, even if the poor folks would both be dealing with smaller numbers but also likely having fewer back up funds that they can fall back upon in the event that they screw up in their bitcoin investment.
Many rich folks might have so many cashflows from various sources that they do not even recognize bitcoin as an important place to put their value, yet poor people may well be able to recognize bitcoin as a place that they are able to invest even small portions of whatever income that they have (presumptively discretionary income) in order to be able to make progress on building wealth that they might not have been able to invest in such small amounts into any other asset, and if they had been saving in their fiat currency (and even in dollars) for years and years and years, they might have had been finding that their abilities to save more has not been causing them to increase their wealth, even after many years of trying to save, so in that sense, bitcoin provides another option in which they can figure out ways to build up their bitcoin investment and to make progress, even if it might take them 15-20 years or longer, if they are creating strong cashflow management practices and putting money into bitcoin on a regular basis, they may well end up seeing a lot of progress within one or two bitcoin cycles, even though surely there is no guarantee that the are going to be profitable, yet bitcoin still represents one of the best, if not the best, place that they can be putting any extra value that they are able to generate through working or whatever other means they have to generate income.
I agree with your comment. Bitcoin investment is a business or company.You are investing slowly for 6 to 10 years and gradually growing your business. When you reach your goal, selling the business is nothing but a fool. Hey, after achieving your goal, you can invest some money somewhere else or do whatever you want. So selling the company is a fool. Gradually, as time goes by, I am a Bitcoin investor and I am sure that the value of Bitcoin will increase and never decrease. There are many whale investors in Bitcoin now. They have accumulated a lot of Bitcoin.
I disagree with you to some point because Bitcoin investment is not really a company reason because there are people who will just invest very little cent and there are also people ( investors) who will invest big cent, so the investor that invested a little cent can not call his or her investment a company but rather it can been seen as a share. Bitcoin investment is just like buying share from a company and keeping it for some period of time so that the value will increase and some people don't just buy and sell they keep on buying and holding. First, you should know or understand that the idea of buying Bitcoin is not to keep it or store it in the wallet forever there is a stage you will reach ( matured stage) you will have to sell some either to use it and enjoy your years of holding or sell to diversify.
You sound pretty lost Pi-network314159 if you are trying to describe bitcoin as if bitcoin were like a company when it is not.
Bitcoin is like a commodity or like a protocol that involves both value and information yet bitcoin was designed in such a way that miners are incentivized to build systems around it and to accumulate bitcoin in their own self interest, which protects and builds bitcoin's network.
Bitcoin is a paradigm shifting asset class that is different from any other asset class that currently exists and bitcoin is different from any other asset that existed prior to its invention/discovery. Sure even though bitcoin was invented / discovered, there have been a lot of other coins/projects trying to imitate bitcoin or to proclaim (or promote themselves) that they similar to bitcoin or better than bitcoin, which is not true. Hopefully none of us are getting distracted into shitcoins and/or not being able to try to understand how bitcoin is different from the others.
If there is an ability to dethrone a leading network protocol like bitcoin, then the competitor would need to be 10x better or more than 10x better, which there are currently no contenders in regards to dethroning bitcoin.
Bitcoin is in the process of dethroning gold and fiat (such as the dollar) because bitcoin is more than 10x better than each of those prior monetary system, even though it takes time for the process of bitcoin being dominant to play out. Surely fiat has mostly dethroned and demonetized gold, even though gold is going through some recent recovery, but gold is not even close to as good as bitcoin, even if gold is physical and gold is familiar.... Gold still is not going to be able to compete with bitcoin, even though sure, it is not going to give up, since some people still like gold, and they don't really recognize and/or understand how bitcoin is in the ballpark of 1,000x or greater than gold.
Microstrategy is a company that is employing various kinds of financial instruments and debt in order to leverage fiat systems in the acquisition of bitcoin under financial terms that are better than other companies have so far been able to achieve. MSTR has little to no control over bitcoin, even though MSTR aspires to accumulate as much bitcoin as they are able to accomplish through their establishing systems and a reputation for accumulating bitcoin, and investors want to get in upon the profits that MSTR has been generating with such system of bitcoin accumulation that it has been employing and will continue to employ.. ... unless they make some mistakes and fuck up their BTC custody... which could happen, but bitcoin gives no shits about if MSTR loses its bitcoin or sells its bitcoins back onto the market (which they have clearly and unambiguously claimed that they do not plan to sell any of their BTC, since they are in the process of accumulating as many bitcoin as they are able to accomplish)..
Bitcoin is not dependent on the success or failure of MSTR... and it is also not dependent on the success or failure of any governments (including the USA), even if there may well be attempts for some companies and/or some governments to control, manipulate and/or influence it.
A rich man must not save or keep emergency funds down when investing in bitcoin like an average or low income earner. This is because his financial strength is very strong and he has several streams of income in which he can take from any of them to sort out an emergency when it occurs and it will not affect him at all, because he has the luxury to tap funds from any of his investments or business. Such person has overcome the challenges of an unforeseen circumstances that will occur in future.
Yes, you are absolutely right. If you always have several times the amount of your entire backup fund readily available, then why would you need to create a separate fund? If you have a special ability to leap across a river, why would you spend time building a boat? A wealthy person has multiple options to handle emergencies; they can gather funds from various sources when needed. So, why would they spend time creating a separate emergency fund?An emergency fund is essential for those who lack the financial resources to combat urgent situations or whose leftover income after meeting daily needs is not sufficient to both invest and handle emergencies. A wealthy individual earns enough to meet their needs while also having excess funds to invest, leaving them with a significant surplus. However, a poor or middle-class individual often spends most of their earnings on daily necessities. While they may have some money left for dollar-cost averaging (DCA) and even setting aside a backup fund, they usually cannot retain enough for major emergencies.
For such individuals, having at least one emergency fund is a fundamental necessity. It would be a mistake to generalize the same financial strategy for everyone.
that a rich man don't need an emergency fund before he can start investing bitcoin?
It is a very wrong thing to say, because before you start investing in bitcoin for a long period of time, you have to get yourself prepared, be you rich or poor, nobody is excluded when it comes to financial challenges, because as a human being you must face unforseen circumstances be you rich or poor.
Be you rich or poor you need an emergency fund and a back up fund as well, to enable you build a solid investment portfolio for a long period of time, or you will end up building nothing but regret.
It seems that I already attempted to address these kinds of questions in my earlier post (above responding to Jewan420). The punchline is that rich people have more resources, and so they may not need to specifically designate any of their funds as emergency funds to still be able to use them. Poor people tend to need to specifically set themselves up with emergency funds, since they don't tend to have as many options or sources of back up funds that they can draw upon if they come into an emergency in which they lose income or have increased expenses. Surely, even rich folks could engage in poor cashflow management and deplete their various back up funds and even end up screwing up their bitcoin investment because of their bad cashflow management practices.
Many times we discussed that an emergency fund does not need to be established in advance in order to get started investing in bitcoin, yet surely the poor person is probably going to be in a situation in which he has to be careful to try to build up his emergency fund along with his bitcoin investment, especially in the earliest times of getting started and building his bitcoin investment, so if the poor person already does not have a lot of discretionary income and if he is starting to buy bitcoin, he likely needs to be paying attention to ways to build his emergency fund and to figure out practical ways of balancing the building of the bitcoin investment and the emergency fund without overly engaging in risks, and surely if he is able to continue to build his emergency funds and his bitcoin investment, then perhaps by the time he builds his emergency fund up to 3 months of his expenses, then he can start to become more aggressive in his bitcoin investment, yet even 3 months of emergency funds might not necessarily be enough for him to become aggressive in his bitcoin accumulation since he may also may need to build other back up funds so that he never has to touch his emergency funds absent an actual emergency, so if he builds his finances better and better, then he may well never have to tap into his emergency funds, and he becomes more empowered because he is building both his bitcoin investment and strengthening his cashflow management practices.. which may well end up elevating him to no longer being poor (at least not as poor as he used to be), and much of improvement in his situation can come from the combination of both improving hs cashflow management and also by his building his bitcoin stack size.
No one is saying that it is easy for a poor person, and poor people may well have a lot of challenges to really build up their bitcoin investment and their cashflow management systems, and it well could take a whole cycle or longer just for the poor person to get to a point that he has 3 months of bitcoin expenses invested into bitcoin and 3 months of an emergency fund... and surely if there are ways that the poor person can figure out how to increase his income and/or to decrease his expenses, then that can help him to build his bitcoin investment faster... yet at the same time, there might be some expenses that are not worth cutting... so for example a poor person may well know that he is able to make money by buying a motorcycle, and his income is improved by that, so he has to figure out ways to buy his motorcycle, and perhaps making sure it is a reliable one... The same could be true by some other expenses that he might not be able to cut, but he tries to find ways to spend his money smartly, including that maybe he might be better off to take a course to be an electrician, since he knows that he can increase his income, yet he also knows that it s going to cost time and money and perhaps even make it harder for him to buy bitcoin during the 6 months that he is taking electrician school and while he might be having to work for lower wages during his learning process. The answers can be complicated, including that sometimes people make mistakes in their career choices that might make it more difficult for them to change the kind of work that they do so that they can figure out ways to make more money.. so that they can buy more bitcoin.