I don't see much point keeping 6+ months worth of emergency fund expenses in a bank account when any decent exchange allows you to convert BTC to fiat and get it to a bank account in a day or less.
Discussion
It's about not selling the bottom because when you lose your job it's often at the time of market contraction
Yeah that reality shifts when you’ve been through at least 1 cycle & your bitty is still significant in a potential bear market
Banks are over. They need to reinvent themselves.
Problem is the bank side. They can see funds are coming from an exchange and block your account. Don't ask me why (the algorithm of it), but it happens.
Better keep an bank account only for it. And another for the usual fiat stuff.
Fair enough, I've never had that problem, probably because I use small credit unions instead of big banks.
Exactly
Stay humble stack sats
And keep your time and energy out of that corrupt and disgusting system
As your bitcoin grows your cash allocation can shrink.
If a bear market would shrink your runway to a week or 2 you should probably have some cash. If you'll still have months at an 80% drawdown you are giving away NGU for very little upside security by keeping that cash.
I don’t see much point in holding any fiat…
💯
Banks are the real plebs
Even before Bitcoin, I never bought into the idea of an 'emergency' fund bank account anyway. I mean, in the rare instance of an actual unforeseen emergency, that's what extended credit should be for (not for non-emergency over-indulgent expenses).
Agree. I only keep fiat when I have a known upcoming fiat expense. I sell earlier so I don't feel sad if Bitcoin dips the day I need to make payment.
Strike allows you to even make an ACH payment and deduct it from your bitcoin balance. So depending on the nature of the emergency that could be even faster or better than cashing out through dollars to a bank.
The only objection for me currently, is the impossible accounting and tax reporting/fees that comes with converting BTC to fiat. That’s a hassle I’m just not ready to deal with
mt pelerin has fast kyc free up some amounts, really good and fast
Until they don't
Taxable event, bitcoin can be negatively volatile on a 6-month timeframe. These things can't be ignored for people with only modest stacks.
Agreed
You keep your bitcoin on an exchange??
Might consider using a cryptocurrency card such as https://wirexapp.com/r/yangm97 or crypto.com (I won’t even bother digging an affiliate link for this one because I think Wirex is better. at least it should serve as an alternative/fallback).
Or, you know, having a few p2p contacts nearby. And if there’s none in your neighborhood, become the p2p guy!
Taxes
You don't think bitcoin is a bit too volatile to use as an emergency fund?
1 btc = 1 btc but if your emergency coincides with low btc to usd price, then you could be in trouble
💯 I shoot for 3 months and feel it’s plenty, and even that only because I have a wife and kids
For that exact reason, my bank thought that my net worth is about S$4000 for most part of the last decade 🤷♂️
Keep 6 months of long shelf life food stocked up.
When shit hits the fan, people gotta eat, food (that you can't just grow yourself) will be more valuable than fuel, money, gold, etc.
And if shit dont hit the fan, if you're just broke or have an emergency, you won't go hungry.
Depends on your stage of life I think and how long/how much you have been able to stack BTC. Keeping your emergency fund in BTC when you have 10 BTC is a lot different for those early on who may have 0.1 BTC
FIFO is why. You do understand tax law right?
I wonder, what is your point exactly? Are you saying that because of holding bitcoin and then having to spend it more often, he's going to have to pay more tax? That may be true, but the taxes are paid on capital gains, so he only pays if he actually gained more capital.
People think that if they bought 10 BTC ten years ago at $1000 and put in cold storage and then last week bought 1 BTC for $120,000 and left it in an exchange and sold it this week for for $115,000less they won’t have to pay taxes. In reality the tax liability is on the $114,900 profit from the $100 BTC sold for $115,000. FIFO.
Oops typos the first buy was $100 not $1,000
Is there a work around for FIFO? Is this the case for all transactions in USA? I’ve been trying to get my head around this for the last few days
Nope.
Here’s is your work around…. https://stocks.apple.com/A8h_tEw3DTROh1RcBtK80Aw
Only when there is no dollar….
You don't want to get squeezed by a temporary price drop and force to sell your bitcoin at a severe discount just to make ends meet. Now if you can borrow against your coins, it might be all right.
Emergencies tend to compile. When you need it may very well be when it’s drawn down 50%. If you have enough then it doesn’t matter. Not everyone is in that position
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We are looking for an investor who can loan our holding company 237,000 US dollars.
With this money, we will open a farm in Baku, Azerbaijan to produce animal-based food.
We will also make our own animal feed, so our products will be healthier, better quality, and cheaper.
Because we sell quality products for less and have strong advertising, we will sell more worldwide and make big profits.
Why Azerbaijan? Because animal farming makes a lot of money there, but few people do it. That’s why we will earn more by starting in Azerbaijan.
Additionally, by producing our own animal feed, we will be able to sell healthier, higher quality animal products at a lower price.
Since we can sell quality products cheaply and thanks to our strong advertising network, we will be able to sell more internationally and make huge profits.
The reason for establishing the business in Azerbaijan is that animal husbandry is a very profitable business in Azerbaijan, but since there are very few people doing animal husbandry, establishing the farm in Azerbaijan will provide us with more income.
Your profit:
You will lend 237,000 US dollars to our holding company and when 22.03.2026 comes, you will receive your money back as 953,000 US dollars.
Your earnings will be great. When 22.03.2026 comes, you will get your money back as 953.00 US dollars.
You will lend 237,000 US dollars to our holding company and when 22.03.2026 comes, you will receive your money back as 953,000 US dollars.
When 22.03.2026 comes, I will give you back your money in the amount of 953,000 US dollars.
That means you will earn 716,000 US dollars profit in just 9 months.
If you like this project and want to loan us money, message me on WhatsApp or Telegram for more details.
If our project is suitable for you and you would like to lend money to our holding, send a message to my WhatsApp number or Telegram username below and I will give you detailed information.
For detailed information and to lend money to our holding, send a message to my whatsapp number or telegram username below and I will give you detailed information.
My WhatsApp phone number:
+44 7842 572711
My telegram username:
@adenholding
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