Hodl (Naija)

[Proty]

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For example, let’s say you keep your entire $5,000 emergency fund in the form of bitcoin and an emergency now  comes up when the market is down, if bitcoin drops by 30%, then that means your $5,000 emergency funds that is in the form of bitcoin would suddenly become worth only $3,500 at that particular time. And because of the fact that emergencies can’t wait for the market to recover first, you could be forced to sell at a loss just to handle that emergency situation. I hope you get my point now? @Versatile_choice.

Yes, I get your point. but still it doesn't make sense to put our emergency money in bitcoin knowing fully well that the price is not always stable. Emergency fund should be hold in fiat and not in bitcoin, I know some might be doing that so that they don't get affected by inflation but there's no need for that, because it's the money we will be needing anytime soon so inflation may not eat it up so easily. the only money that is supposed to be put or invest in bitcoin is the money we may not be needing anytime soon, perhaps in the future. That is why it's advised to invest from our discretionary funds, because it is gotten after all our expenses is been figured out which can also be seen as Left over and we can decide to spend it in whatever it is that we would like to spend it.

It is not a good idea for an emergency funds to be used to buy bitcoin because this will definitely define the purpose for which it is meant for. An emergency funds should be in a form that it can easily be accessible whenever it needs arises in the future. Therefore, having It in bitcoin is wrong because when the need arise and it happens the price of bitcoin is low compared to the price it was purchased, then the person will be selling at lost.

[Lenubari]

It is not a good idea for an emergency funds to be used to buy bitcoin because this will definitely define the purpose for which it is meant for. An emergency funds should be in a form that it can easily be accessible whenever it needs arises in the future. Therefore, having It in bitcoin is wrong because when the need arise and it happens the price of bitcoin is low compared to the price it was purchased, then the person will be selling at lost.

I concord with the point you're making. The primary purpose of an emergency fund is liquidity and quick access during unexpected situations. Because of Bitcoin's price volatility, using emergency funds to buy Bitcoin can expose someone to unnecessary risk. If an emergency occurs during a market downturn, the person may be forced to sell at a loss, defeating the purpose of having an emergency reserve in the first place.

Emergency funds are better kept in low-risk and easily accessible options, while Bitcoin and other investments should ideally be purchased with money that is not needed for short-term emergencies. Separating emergency savings from investment funds helps maintain financial stability and prevents difficult decisions during urgent situations.

[Karl_3000]

Bitcoin price:
₦86,545,542 ($63,678  €55,476  £48,117).

I have added how much worth is 1 BTC in Euro and Pounds sterling and not only dollar while naira remain the primary estimate. If you think I should add more currencies, you can tell me about the currency but I think these 3 foreign currencies are enough.

Happy bitcoin holding.

I like that this thread is getting more attention, I hope as we continue to discuss on this our wonderful bitcoin hodling thread, we also continue to hodl bitcoin.

[cxtreenal]

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For example, let’s say you keep your entire $5,000 emergency fund in the form of bitcoin and an emergency now  comes up when the market is down, if bitcoin drops by 30%, then that means your $5,000 emergency funds that is in the form of bitcoin would suddenly become worth only $3,500 at that particular time. And because of the fact that emergencies can’t wait for the market to recover first, you could be forced to sell at a loss just to handle that emergency situation. I hope you get my point now? @Versatile_choice.

Yes, I get your point. but still it doesn't make sense to put our emergency money in bitcoin knowing fully well that the price is not always stable. Emergency fund should be hold in fiat and not in bitcoin, I know some might be doing that so that they don't get affected by inflation but there's no need for that, because it's the money we will be needing anytime soon so inflation may not eat it up so easily. the only money that is supposed to be put or invest in bitcoin is the money we may not be needing anytime soon, perhaps in the future. That is why it's advised to invest from our discretionary funds, because it is gotten after all our expenses is been figured out which can also be seen as Left over and we can decide to spend it in whatever it is that we would like to spend it.

It is not a good idea for an emergency funds to be used to buy bitcoin because this will definitely define the purpose for which it is meant for. An emergency funds should be in a form that it can easily be accessible whenever it needs arises in the future. Therefore, having It in bitcoin is wrong because when the need arise and it happens the price of bitcoin is low compared to the price it was purchased, then the person will be selling at lost.

If you have an emergency fund size that is large enough, you can accumulate Bitcoin. For example, you have an emergency fund available to cover 6 months of household expenses. In this situation, if you think that having an emergency fund of 3 or 4 months will protect your Bitcoin holdings considering your financial situation then accumulation Bitcoin through an extra amount of funds would be a good strategy. This strategy is best applied during times when Bitcoin price is in a declining period.

The purpose of having an emergency fund is to create a financial safety net to deal with emergencies, rather than withdrawing Bitcoin holdings, and continuing this process in the long term.

[Obulis]

People get carried away with quick gain but hodling Bitcoin is good better best. There was thread trying or questioning about the next leading asset but that question might take even a century for another asset to take on board so that means hodling Bitcoin is not a mistake. Hodling Bitcoin without looking black, Bitcoin is the leader asset, hold Bitcoin in your life time.

[Versatile_choice]

[Edited out]

You’re still not getting me, are you even reading my write up well to understand ?
I never said it’s a good idea to put emergency funds in the form bitcoin, in fact that is exactly what I’m kicking against. I’m fed up at this point, if you guys can’t properly read and understand a simple statement then I don’t know what I can do again.

If there's anyone who is misunderstanding things here it should be you, i was not referring to you rather, I'm just responding to what you said about folks who are putting thier emergency money into bitcoin. I know you are also kicking against it, maybe you don't understand what I wrote. I think you should read through it so that you will understand more better.

Or should I break it down so that you will understand? Ok! What I was trying to say is that it's bad for investor to put his or her emergency money in bitcoin due to the fact that the price is not stable, because we might need them  anytime. Our emergency money should be hold in Fiat or in any where we can access them freely when we are in need of it.

[Orpichukwu]

People get carried away with quick gain but hodling Bitcoin is good better best. There was thread trying or questioning about the next leading asset but that question might take even a century for another asset to take on board so that means hodling Bitcoin is not a mistake. Hodling Bitcoin without looking black, Bitcoin is the leader asset, hold Bitcoin in your life time.

Bitcoin holding for a long period profit is indeed more secure than you could possibly lose in that journey; fast profit is not the only thing denying some people from holding for a long time, but lack of good financial management also has its own role. When you are spending more than you are making, you could always be forced to sell and spend the coin that has already been accumulated.

[Dzwaafu11]

People get carried away with quick gain but hodling Bitcoin is good better best. There was thread trying or questioning about the next leading asset but that question might take even a century for another asset to take on board so that means hodling Bitcoin is not a mistake. Hodling Bitcoin without looking black, Bitcoin is the leader asset, hold Bitcoin in your life time.

You know the problem that people have when it comes to Bitcoin investment is the fact that many of them believe that Bitcoin investment will make them rich in a short period of time, which is a lie.

Although, this is lack of knowledge that is why I don't blame them dometime, the only time I blame such people is when they rush without knowing how the market moves. Or someone who invest in Bitcoin because he see another person cash out from Bitcoin, this is what many of the newbies face, and they think its a easy stuff.