Sure, it may well be preferable to error on the side of having more emergency fund rather than not enough, and surely folks who do not have an emergency fund are likely ending up using their bitcoin as their emergency fund, which protecting the bitcoin investment should be part of the rationale to build and to maintain the emergency fund in the first place.
And, like I have mentioned in other posts, it could well take a guy a 1-3 years or more to merely establish an emergency fund and a bitcoin invested amount in which each adds up to 3 months, especially if we may well consider that a guy who is investing 10% into bitcoin and/or his emergency fund, it would take 10 years at such rate to invest 1 year's worth of income whether that is into bitcoin or the emergency fund or a combination of both.
Frequently I have argued that an emergency fund does not need to be more than 3 months, since the funds in an emergency fund are more strictly held for emergencies, yet if some folks want to build back funds beyond an emergency fund and to have more flexibility with the back up funds, then they could do that, even though if emergencies were to come in terms of increased expenses and/or decreases in income, then the back up funds would likely be tapped into and exhausted prior to tapping into the emergency funds and the emergency funds would be tapped into and exhausted prior to touching the bitcoin. And, yeah, it could take some decent amount of practice to figure out reasonable balances in regards to how to build up and to maintain various kinds of back up funds.
Great, now we understand each other and are pretty much on the same side. And, like I have mentioned in other posts, it could well take a guy a 1-3 years or more to merely establish an emergency fund and a bitcoin invested amount in which each adds up to 3 months, especially if we may well consider that a guy who is investing 10% into bitcoin and/or his emergency fund, it would take 10 years at such rate to invest 1 year's worth of income whether that is into bitcoin or the emergency fund or a combination of both.
Frequently I have argued that an emergency fund does not need to be more than 3 months, since the funds in an emergency fund are more strictly held for emergencies, yet if some folks want to build back funds beyond an emergency fund and to have more flexibility with the back up funds, then they could do that, even though if emergencies were to come in terms of increased expenses and/or decreases in income, then the back up funds would likely be tapped into and exhausted prior to tapping into the emergency funds and the emergency funds would be tapped into and exhausted prior to touching the bitcoin. And, yeah, it could take some decent amount of practice to figure out reasonable balances in regards to how to build up and to maintain various kinds of back up funds.
I would like to say here that this also depends on your total capital and cash flows. There is nothing wrong with having an emergency fund in combination with a back fund. The general thing is that you can't possibly prepare for everything while being balanced with the rest of your finances, so it is not a problem that has an optimal solution. It is more of risk-balancing dance that is built on a good foundation of knowledge. I personally like having a one-off very large fund next to the emergency fund now that I can afford it. A 3 month emergency fund would not cover something like a major situation like an extremely expensive surgery, and it is not supposed to don't get me wrong. Depending on where you live and what kind of insurance is available, you may not need this anyway. Further, one does need to be discouraged if their fund or current goals are small in this context. I actually liked my path towards building my funds, and you can gamify your journey. Each milestone was a very proud moment for me. $1000 fund complete? Rejoice and prepare for the next build.
Choosing our position size is helpful in managing risk, and also considering that we are investing no more than we can afford to lose, so we are already appreciating that we could lose our money when we invest it into bitcoin.
Hopefully we figure out an appropriate balance in order to not invest too whimpily into bitcoin, since the guy who invested the last 10 years at $100 per week ended up doing way better than the guy who only invested $10 per week. In fact the guy investing $100 per week, ended up with a bitcoin portfolio size that would have had been 10x larger than the guy investing $10 per week.
I guess in general I would say that you shouldn't bite more than your finances or your emotions can manage. Hopefully we figure out an appropriate balance in order to not invest too whimpily into bitcoin, since the guy who invested the last 10 years at $100 per week ended up doing way better than the guy who only invested $10 per week. In fact the guy investing $100 per week, ended up with a bitcoin portfolio size that would have had been 10x larger than the guy investing $10 per week.
