I get your point, and yes going all in, can amplify gains during a bull run, but it also exposes you to unnecessary risk. Holding emergency cash isn't about being negative, it's about being prepared. Imagine losing your job or facing a health issue during a bear market if all your money is in Bitcoin, you might be forced to sell at a loss. That’s not strategy,that’s desperation.
Smart investing isn’t just about chasing profits, it is about staying in the game long enough to realize them. Keeping some cash on the side actually protects your Bitcoin stack, because it gives you the freedom to hold through dips instead of panic selling.
So yes bet on Bitcoin’s future, but bet wisely. Risk management is part of the strategy.
Why always assume the worst and lose gains because of it. You are saying two negative things needs to happen all at the same time.
First, the price of everything should fall, so we are in a bear market, AND then we are going to lose our job at the same time. Isn't that really weird that you want to lose possible gains for a back to back possible bad things?
I do not agree that it's being "prepared", it is being paranoid after a point. If you really want to, 10% of your portfolio could be USDT, and that way you could have some emergency fund.
But, I believe AT LEAST 10x of your emergency fund should be in
BTCitcoin.
I am not saying go buy some shitcoin or memecoin, I am saying bitcoin itself, the big coin, the top dog, it is not going to crash and then you lose your job, that is way too low chance.
It seems to me that each of us should be prepared for a variety of scenarios, even extreme scenarios and losing your job and the bitcoin price falling are not outrageous scenarios at all.
Your suggestion that bitcoin is 10x of your emergency fund seems quite strange including that in the beginning of your bitcoin investing time, your emergency fund and your bitcoin investment might be similar in size.. and it could take a bit of time before your bitcoin investment is outgrowing the size of your emergency fund. If you don't have enough emergency fund then you are more likely going to get stuck in a situation where you have to sell some or all of your bitcoin at a time that is not of your own choosing.
I will agree that the larger your bitcoin investment grows, then it is likely going to start to outpace your emergency fund, merely from the amount that you put into bitcoin, and not necessarily considering the amount bitcoin might appreciate from time to time. I think that it is more healthy to consider emergency funds and even other back up funds, such as reserve funds, as a means to cover at least 3 months of expenses for emergency funds, yet surely the larger and larger your bitcoin holdings grow, the more you might want to have various kinds of back up funds that might also include some funds that are more liquid and less volatile.. like exactly in physical cash.. and then other funds that might be more volatile but earning some kind of a yield yet they still might be somewhat liquid (might take a week or so to convert to cash if needed) but maybe not overly volatile.. .. but yeah the more wealth that you have, then the more back ups you might want to have so that you are not totally dependent on the price of bitcoin, so your suggestion that your bitcoin is at least 10x the size of your emergency funds seems to be more of an advance stage of your bitcoin holdings and not likely to be very common during the earlier years of your bitcoin investment... but even thinking 3 months of emergency funds means that your bitcoin is at least 30 months of expenses... so that is surely a more later stage of a persons investment since it could take more than 10 years for a guy to get his bitcoin investment to be 30 months of his expenses, and that is assuming bitcoin appreciation in the process.. since the guy's contributions on their own are likely to take quite a bit more than 10 years to reach such levels and a guy might never end up investing the size of 30 months of his expenses into bitcoin..