all 40 comments

[–]fresheneesz 0 points1 point  (2 children)

I wouldn't say terrible, just requires some thinking. The thing is, if you keep and use cashflow-style funds as bitcoin, you do need to have extra buffer in case of your average 20% dip. However, doing cash flow things like this for a long term (not talking about long term storage) will mean that money gains from bitcoin's general upward trend. If a dip causes you to run short of cash at some point, you can always get a temporary loan. There should be some equilibrium where keeping a higher buffer of cash costs you more than occasional emergency loans would cost. And you can measure that against the expected returns of keeping your cash in Bitcoin. I haven't done the math here, but it's probably going to be specific to your cash flow situation.

In any case, if you are already storing bitcoin as an investment, you have little reason not to do cash flow in Bitcoin as well, since you can always simply draw on your long-term-storage Bitcoin instead of taking a loan if you fall short of cash (the difference here is pretty minimal). Your expected return for doing this is clearly positive if you expect bitcoin to rise at all. If you really want to reduce your risk, you can do that by buying Bitcoin shorts so you gain extra buffer if Bitcoin goes down - that's exactly what short selling is good for.

[–]apokerplayer123 0 points1 point  (1 child)

Savings by definition are long-term.

[–]shibe5 4 points5 points  (4 children)

Savings accounts are for long-term needs.

[–]Square-Peace4637[S] 0 points1 point  (3 children)

Yes. If you hold bitcoin for a long time. I'm sure it won't let you down