I have talked about the investment strategies of the rich and the poor in Bitcoin above.
Let's say a son of a rich family starts earning after reaching a certain age and he earns $2000 per month. Since he is the son of a rich family, his family must have some previous savings. Suppose his family's previous savings are "X" dollars and he can save $200 per month from there to earn now. Then in the first month of his income, the savings will be =(X+200) dollars. After a year, it will be =(X+2400) dollars.
Now let's come to the case of a son of a poor family, let's say he also earns $200 per month like the son of a rich family. Since his family has no previous savings, in this case, if he saves $200 per month, excluding his incidental expenses, then his savings in the first month of earning will be =$200. After a year, the savings will be =$2400.
Now if we review the issues, we will see that if the boy from the first family keeps the savings left by his family - "X" dollars as an emergency fund, then later he will be able to invest the entire amount of money he is saving every month in Bitcoin or other areas.
And in the case of the second family, from the savings he is saving every month, he will have to save a certain part in his emergency fund and the remaining part he can invest in trees or other areas.
In this case, I mean that the boy from the first family can invest his current earned money with as much thought as he can, while the boy from the second family will have to invest his saved money with a thousand times more thought because he has no previous savings that will provide him with financial security later.
This was my previous post.
I actually wanted to talk about the reality of rich and poor investing in Bitcoin and raising emergency funds.
You have to attempt to use your best judgment. If you have absolutely no savings, then surely you are starting from zero, yet we know that to invest into bitcoin at all you have to have some reasonable ability to assess and conclude that you have discretionary income, and by definition, discretionary income is money that is left over after you have accounted for all of your expenses. If you are trying to invest into bitcoin from money that you need for expenses, then you do not have discretionary income and so you should not be investing into bitcoin.. because you would merely be taking chances with money that you actually need to cover expenses.
For practical purposes, I frequently like to presume that even the poorest of people will tend to try to have some kind of a cash cushion to try to cover 2-6 weeks of their living expenses in case their income really were to dry up.. so in some sense, if a guy does not even have 2 weeks of living expenses that are saved up, then he may well not even have enough discretionary income to be able to justify investing into bitcoin.
So, there is a need to establish that you have discretionary income to even justify investing into bitcoin at all, and so even though people can do whatever they like, I don't recommend investing into bitcoin if you do not have discretionary income or if you are not sure... If you are not sure, then it is better not not invest into bitcoin with money that you may well need for expenses.
Once you figure out that you have discretionary income and you decide that you want to invest into bitcoin, then frequently I suffest that at minimum, you should be striving to protect your bitcoin investment by simultaneously building your emergency funds and your investment into bitcoin at the same rate until you get up to 3 months of expenses and the equivalent of three months of your expenses invested into bitcoin.. and sure the bitcoin side of the matter may well go up and down in value more than the part that you are keeping in fiat... so if you ONLY have $10 per week of discretionary income that you are able to invest into bitcoin, you may well have to invest half of that $5 into your emergency fund and $5 into bitcoin.
You have to figure out some reasonable way of balancing out these matters, and there could be some flexibility even if the matter is also simultaneously stressful.
Let's say that you have considered that your monthly expenses are right around $300, so to build up your emergency funds for 3 months that would be $900 invested into the emergency funds and $900 invested into bitcoin, yet if you are ONLY investing $5 per week into each, then it could take 180 weeks for you to have had invested $900 into each.. which surely is right around 3.5 years... so surely it could take a long time to build up both your emergency funds and your bitcoin especially if you are ONLY putting $5 per week into each.
surely there could be times in which you come accross more money, and you might come to bitcoin and you already have around $300 of emergency funds but you have no bitcoin, so you might choose to put $8 per week into bitcoin and $2 per week into your emergency fund, or maybe you decide to put $10 per week into your bitcoin for 30weeks until it reaches $300 invested, and then after those first 30 weeks you then decide to put $5 into each until the emergency funds reach $900 and then at that point, you may well invest $10 into bitcoin and you no longer need to keep adding to your emergency funds. None of us can tell you exactly how to do it, yet if you fuck things up, you are the one who suffers the consequences, so you have to figure out some kind of a balance that you consider to be reasonably prudent and perhaps even reasonably aggressive in regards to investing into bitcoin at the same time.
Thanks to you, I now fully understand the subject, and I can now adopt the right approach to investing.