Oh how clumsy of me... And you're absolutely correct. I initially wanted to say cumulative effect and not compounding effect. But thanks a lot for pointing this out and for taking out time to clarify the distinction between the two. Indeed, Backup funds do really grow cumulatively when we constantly replenish or add to them, while Bitcoin's growth on the other hand could be better described as being compounding since the gains doesn't only depend on the investor's adding to it alone but also builds on top of gains. The correction was well noted and appreciated as it helps to keep the terminology precise and the communication clearer.


Yeah, that makes a lot of sense. Folks must prioritize treating those funds like a living system, first of all, define the rules, and then as your situation improves, so will those rules evolve too. At first, it might look like it's a bit fragile, since there's no much cushion, but as one proceeds and stays consistent for a few more years, you'll not only have yourself a solid Backup fund, but also a larger and secured Bitcoin portfolio too. The key is sticking to your own rules and avoid breaking them, except of course the situation really requires you to and your hands are completely tied, because the moment one begins to casually dip into their Bitcoin stash, the whole compounding effect that they're trying to capture is automatically threatened and undermined. And the best part of this strategy is that, as time goes on, the habits of protecting one's emergency base and tightening their expenses when the need arises will automatically reinforce themselves, helping one build the resilience naturally.