Re: Buy the DIP, and HODL!

An emergency fund should be considered essential by anyone considering long-term Bitcoin investment and not wanting to disrupt their Bitcoin balance every time they need cash. However, I recommend everyone have a steady job with a regular income stream so they can manage it carefully, including allocating a portion of their income to an emergency fund and using the rest as capital to buy Bitcoin.

To invest or create an emergency fund, we need a source of discretionary income. If you do it with your fixed income source, it may not be very sustainable. For example,

*Discretionary income is the amount of money left over from your fixed income after deducting all expenses. It is better to invest with discretionary income because you do not need this amount of money very much. The money that is left after meeting all your expenses is discretionary money. If you invest with discretionary income, it becomes much easier for you to maintain it in the long term.

If you do not have an emergency fund, you can create it along with your investments. You can keep some money aside for an emergency fund from the amount of money you wanted to invest from your discretionary income. If you do not have an emergency fund, you can do emergency fund and investment at the same time.

If you invest with fixed income, you may not be able to maintain your investments in the long term. For example, if you need the money, you will have to sell your holdings. So you should invest with discretionary income.

You said that even if people with fixed income invest, they will fail to do so in the long run, in that case I disagree with you, if you have a fixed income then he knows how much money he will get every month and you can set aside a small part of that amount for investment, you don't have to own a lot of assets to invest, you can start small, you can use the DCA strategy because through this you can invest in Bitcoin regularly or monthly, no matter what the price of Bitcoin is, the more consistently you buy Bitcoin, because it will help to grow your wealth and strengthen your investment.

I think you’re misquoting Loyang, and deviating from the point Loyang is trying to say because after I carefully read through loyangs post I think he’s actually stating the obvious fact based on the point I feel the quote is trying to talk about. I think what Loyang is trying to say that is not good to take all your weekly or monthly earnings or income to invest in bitcoin. For example if a person earns $100 as a fixed salary or income per week or month, that it’s advisable for the person not to take all the money to invest In bitcoin, because if that happens, the person will be in a serious financial crisis during his time of need to settle his other financial obligations and also when an emergency occurs, the person is likely to tend to his bitcoin holdings to sort out his financial obligations or during emergency situations. Instead, its advisable that the individual should be able to first of all settle or sort his other financial obligations such as paying for his rent, and other bills etc, and whatever money that’s left (discretionary income) after settling all of this should be used to invest In bitcoin and also from there the individual can also build up an emergency funds in order to sustain or maintain his ongoing investment.