A savings account in dollars is a terrible financial decision.
Not because savings is bad, very much the opposite is true, but because dollars are terrible money.
Discussion
They should be called "loosing accounts"...
haha that's a great meme actually!
"you have a savings account? Cool you own bitcoin?"
"no its just with my bank"
"ah you have a *losing* account, not a savings account." 🤣
Saving value in dollars is like saving water in a funnel.
nostr:note1kxemle020l3nyredc3gpwjd4urxk2yeysa007cxk622v84dy0lkqf6y38r
dollars are not money.
dollars are debt.
It took me 7 years of convincing my family that sats are the safe haven. Now I get texts every hour from my dad about price action lol
I don't know anyone who has a fiat savings account though.
I mean, I know it's a thing. When I withdraw money from my ATM, for example, it asks, "Checking or Savings?" But I don't recall ever meeting anyone who's used a savings account. For no-coiners, excess capital just goes into stocks and real estate and treasuries. Or for us, Bitcoin.
But fiat savings? I just don't see that too often, do you?
Just growing up as a kid in the 90s, the dollars worth has been cut in half. Insane.
I struggle with this because I want to keep 6 months emergency savings in cash in case my wife or I lose income/job.
I don’t want to keep it in bitcoin because of short term volatility. So it’s in cash.
Any suggestions?
My suggestion is keep it in #Bitcoin and have a long term perspective. The short term volatility will matter less and less as time goes on, and it will matter more and more the longer you hold cash.
Savings is specifically a long term security strategy, don't shoot yourself in the foot by sacrificing its long term usefulness over short term concerns.
In other words, if bitcoin is volatile in a downward direction and something bad *isn't* happening, then use that opportunity to save harder and it will pay off even more when it returns to the mean.
Try telling that to my wife..
For an answer that less general and more practical:
You can use a service like River, they pay like 3% ish on cash balances, and keep 80% of your savings in Bitcoin at all times. That way you are limiting your losses, and making up for it partially with an interest payment. While also not fully exposing yourself to Bitcoin down swings, and leaving room to buy the dip if your situation feels stable.
Thanks, and I hear you. But the purpose of emergency savings is if, say my wife loses her job we’ll be fine for a while.
If she loses her job during a down cycle, and our savings go from 6 months to 2 months, that would be very bad.
Yes, river USD savings account, but I don’t think we can feel good without being in USD, with or without high yield. I’d love to have a different answer, but I haven’t seen one I’m willing to stomach.
“I don’t think we can feel good without being in USD,”
The interest is only paid on USD balances as far as I’ve seen.
Yeah I understand that. Thanks for your input.
Ok wasn’t sure. It seemed at odds with what you said. But regardless if you come up with a good strategy that’s aligned with your needs I’d be interested to hear the breakdown if you think it’s valuable.
The optimum split versus the savings versus the monthly obligations might be an interesting topic for exploring.
Not sure if this is exactly what you were referring to with your last point in optimum split, but I’m about as close to a full blown maxi nowadays but the only thing I get hung up on is “getting paid in bitcoin” then proceeding to sell some to cover monthly obligations. I realize I could sell same day or not transition some % of every paycheck into bitcoin, but services like Fold seem to get more valuable the more you convert to bitcoin every month. Easier to stomach during a bull run like right now but in the subsequent bear it’ll stink to see my stack shrink not only in fiat terms but also in terms of sats. Any tips for how to overcome this hurdle?
I should clarify, we do DCA save in bitcoin, just not 100% of our monthly savings.