How is this a dumb idea: have your emergency fund in btc calculated by the current 4yr average price instead of spot.
What do you think?
Example: I spend 1500 fiat points a month and want 9 months emergency fund but don’t want it to sit there evaporating. So I keep 1500*9=13.5k
Current spot price: 58600
Current 4yr average: 33196
So I take 13.5k / 33.1k = 40660000 satoshis
Which, at todays spot price, would cost me
0.4066*58600= 23826 fiat tokens to have a 9 month reserve at (almost) all times. But, I get to hold it in Bitcoin.
Im very curious to hear how this could bite me - other than the scenario where my income disappears all at once and the bitcoin price dumps below the 4yr average like it did with covid.
@romanleonardo / Roman Leonardo
npub1dm…k6zky
2024-07-01 16:04:02
Author Public Key
npub1dmyh8jjw8gj42d4k3kzkcuxylpnxzrtj2dhyj6gavnwg9pewn6sq7k6zkyPublished at
2024-07-01 16:04:02Event JSON
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"content": "How is this a dumb idea: have your emergency fund in btc calculated by the current 4yr average price instead of spot. \n\nWhat do you think?\n\nExample: I spend 1500 fiat points a month and want 9 months emergency fund but don’t want it to sit there evaporating. So I keep 1500*9=13.5k \n\nCurrent spot price: 58600\nCurrent 4yr average: 33196\n\nSo I take 13.5k / 33.1k = 40660000 satoshis\n\nWhich, at todays spot price, would cost me \n0.4066*58600= 23826 fiat tokens to have a 9 month reserve at (almost) all times. But, I get to hold it in Bitcoin. \n\nIm very curious to hear how this could bite me - other than the scenario where my income disappears all at once and the bitcoin price dumps below the 4yr average like it did with covid.",
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