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.
surely people need to prioritize emergency and reserved fund including other backup fund within the the next 3 to 4 months before more force is now added to bitcoin investment. because if bitcoin is been prioritized more from the beginning instead of emergency then it will be a big problem down the road, especially when emergency or an unforeseen circumstances happens.
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 also agree with you on this too, as long as our emergency and reserved fund is firstly given priority, then bitcoin should be more concentrated, as that will make our bitcoin holding outpace our emergency fund. and normally there is no how it is even possible for emergency fund to compete bitcoin investment when we know that our bitcoin HODLings are meant to last for a longer time without being sold or used for any purpose, but in the other hands emergency funds will surely be used for emergency cases and it will reduce while bitcoin will still be constantly invested on. this reason is why people need to foresee the important of emergency as a priority that will stand as a wage against selling bitcoin in the future. because if bitcoin is given more priority at first instead of emergency then when a serious emergency happens surely its fund will not be able to solve the problem but will include bitcoin investment to be satisfied.
if you know an emergency is coming then it is not an emergency, even though you might need to keep some cash on hand.
Also even more problematic for poor people to be holding 3-4 months of cash and have hardly any bitcoin, which is part of the reason that so frequently as a ball park suggestion I consider that building the emergency funds and the bitcoin until they both reach 3 months as a ballpark idea.. ..
surely we might be saying almost the same thing but its my fault not to include building emergency fund and bitcoin together. but even as i said more priority should be given to emergency in the first 3 to 4 months does not mean that bitcoin will be left without being invested in those periods, NO. i surely mean that a higher percentage should be allocated on emergency and less on bitcoin till the end of those period before priority changes even though we dont pray or hope for emergency to happen.
I think that guys can choose for themselves how much to prioritize one versus the other. Of course, keeping a few month in cash should be empowering, and many people might already come to bitcoin and they might already have a practice of keeping 2-6 weeks of cash, yet when they come to bitcoin, the amount of cash they keep might become more important since they are protecting themselves from dipping into their bitcoin, yet if they have no bitcoin, then what are they protecting themselves from. I doubt that it is really that obvious that having back ups more than a couple of weeks (which might be their already existing practice) is any more urgent merely because an emergency could possibly happen... unless there is something special that is already known that is likely to cause loss of income and/or increases in expenses.
I think the amount of backup funds and emergency funds a person aims at achieving also depends on some factors which could be personal or general. A married investor with a family of 6 would need more back up funds and emergency funds than another bitcoin investor with a family of 2, 3, 4 or even 5 and this needs completely varies from the requirements of a single bachelor who is investing in bitcoin. If this is closely practical, then there may not be a suitable measure as to the number of months to hold as backup funds and emergency funds. The cost of maintaining humans per head is hypothetically exponential as the figures increase which also broadens the factors affecting the usage of the reserve funds, the back up funds and emergency funds all takes a different pattern that may not be tracked adequately too. So I prefer a continuous accumulation of both back up funds and emergency funds alongside your bitcoin stash for at least 2 years based on your summation here, 3 to 4 months per head, for a family of 6 investor.
Let's say a person has an income of around $1,300 per month and expenses around $900. They usuallyh keep between $4450 and $1,200 in cash as their usual practice, yet right now they have right around $600 in cash and they just got paid $1,300. Why can't they put the whole $400 in bitcoin? Why do they need to give priority to their back up funds. And then let's say next month they have $400 in bitcoin and they have $600 in their back up funds.. and they get their $1,300. .. So then they have an extra $400 again, why not put $300 into bitcoin and $100 into their back up funds? Then at that point they have the same amount in each?.. so then the next month another $400 comes and then maybe they decide to put $200 into each and they have flexibility.. they can do what they want.
This illustration is nearly perfect for a bachelor but may not be practicable for an investor with a broader responsibility per head in humans based on family inclination. I think it's better to choose what works for each and every one and not following a general rule or practice so long as you are maintaining a continuous accumulation and it is not interfering with you daily support funds, moreso your reserve funds may be implicated but not involving your emergency funds nor your backup funds.
They could even choose to grow the bitcoin faster and invest $300 into bitcoin and $100 into their back up funds, even though their back up funds are growing slower than their bitcoin and they are taking chances and running risks, yet it is their choice how to balance these matters, and if they screw up they are going to be the one to suffer the consequences, yet at least they consciously are paying attention to what they are doing and they are weighing the risks.
Yea sure, when we are okay with the amount of money in our emergency funds and back up funds, it won't be wrong improving your investment funds to be more aggressive while reducing the amount of money channelled into your emergency funds and back up funds. This is a personal choice which generally, the safety of your bitcoin stash should come first at all time instead of focusing more in the amount of bitcoin you want to accumulate within a set period.
At some point some point down the road their back up funds may well reach $2,700, which is 3 months of their income, and they may choose to continue to grow it beyond three months, so then there would be emergency funds and reserves, and so maybe the emergency funds they try not to ever allow it to be tapped into.. but if they make a mistake and they run out of reserve funds to cover the mistake then they will have to tap into emergency funds, and sure they should give priority to refilling the emergency funds, but they can choose or not choose to build up their reserve funds too.. so then they could end up with 3 to 4 to 5 months worth of expenses, and if they have 5 months that is $4,500 which is a lot of cash for someone with such modest income, yet it may not be so much cash if they might have some specific reason that they have the extra cash... maybe they are saving up to buy a new cell phone that is going to cost $800? There can be various reasons that they might keep more than 4 months of back up funds.
Tapping into the emergency funds for investment sake at any point in time should not even be an option especially among the newbies who still lack proper knowledge of stress management and financial intelligence. Tapping into the emergency funds to refill it later ( soon as possible) after exhausting your reserve funds and back up funds is also more wield as no one knows when nature would hit and hence you've exhausted your reserve funds and back up funds for investment purposes, tapping into the emergency funds would be a final bite. So in this case, aggressive buys could wait until the next payday when you could channel your reserve funds and back up funds too just to safeguard your emergency funds for the safety of your bitcoin stash. This does not mean that emergency is going to happen immediately you tap into your emergency funds but just to be on the safe side.
However, this is not wholesomely identical as everyone has the right to choose what to do with their money. Bitcoin investment is a personal choice of which every gain and losses is also personal. So being practical and unassuming would go a long way to assist in keeping our bitcoin safe. This is for the long-term Investors anyway.