It's absolutely the most considerable.

For a low income earner, you can't assume to put in more than 50% of your income into an investment which we know quite well has a long term target. It will not do you any justice when you turn back to your investment in a short time just so it could save you from demises.

The 50/50 I chose suits my financial budgets and I don't think I will be putting in more for the time being. Except I have an increase in let's say income then I am willing to add more. It's my risk tolerance and I will stick to that for now.

That's the condition of why it becomes a bad idea even if we're so optimistic by holding Bitcoin 100%. We have to attend to the needs where we need to spend money and we will have no option but to sell it at price that we are forced and didn't like to.

But if someone is able to attend to that problem and they can invest wholly without having to think of any emergency funds and they have prepared for it, that's a better situation from that investor.

Think of those investors as fortunate ones because they are free to do whatever they can with their money, and at there is no burden for them to opt to sell what they hold if some events in their lives happen.

It is not wise to invest more than your financial capacity in long-term investments. It is not realistic for a person with a low income to keep  50% of  her income in long-term investments. The purpose of long-term investments is to build wealth over time. But if that investment money is needed in the short term for daily or other purposes  then there is a risk of being forced to sell investments during bad market times. Then long-term plans may be damaged. It may be more reasonable to view the 50/50 ratio as a personal limit consistent with your current financial situation rather than a universal rule. If the investor feels that it is possible to maintain cash flow and continue investing for the long term through this ratio, then staying within that limit may be enough for the time being. There is no guarantee that the results will always be good if the investment amount is high. It is important to invest in an amount that can be maintained for a long time without any additional financial stress. Investment decisions should not be made based on someone else's amount or decision. If your financial capacity increases in the future, the investment amount can be increased. And if the situation worsens, the investment amount can be reduced. True success in long-term investing is what the investor can maintain over the long term, balancing it with real-life needs.

Your emergency funds shouldn't be use to buy bitcoin but to take care of a real life emergency that popped up so that, you don't end up selling part of your bitcoin to take care of that emergency. If you go and use your emergency funds to buy bitcoin, you have killed the purpose of setting up an emergency funds which is to prevent you from selling your bitcoin prematurely.

 If you go and buy bitcoin with your emergency funds and the next day the price of bitcoin dips, if you are hit with a real life emergency at that time, you will sell your bitcoin at loss to take care of that emergency.

Mistakes are always a way of better learning and also allow for doing better strategy for the future; diversification of funds is also important for every investor. Having emergency funds is always important; if anyone is doing investment without having any proper strategy or without keeping emergency funds, it means he is having a loss on his side from the start of his investment, which has never been a good sign.
Humans can't avoid emergencies; these are also part of lives, and they need to have preparation for them as well because many times they need funds while the market is not doing good. Many lost their good investments or profits just because of this; they did not do this, which hurt them badly, and they had to sell their investments at a loss.
Understanding of risk management is one of the key factors in investment because this always gives a better way of having a good strategy and also keeps things on a good level.

It's not a sin that you made a mistake in the initial time, but what matters here is the lesson which you learned from that mistake and what steps taken to prevent such mistake from reoccurring in the future.
When you mention emergency funds, They're are meant to cushion you against short-term shocks, that's when market dips about 30%-50% and not subject you to market volatility


Secondly, There's no percentage of investment you do (80-20, 50-50) that's bad all depends on what that suits your income, and without you having to be forced to selling on pressure to sort your needs. Any funds that you're putting in Bitcoin should be considered a long-term investment. Set up emergency funds in place and also have some fiat available to carter for your day-to-day expenses.
With this your experience I believe you will be able to invest wisely now.
 

Bitcoin can serve on different purposes as long as we are being able to apply using it where applicable, I have seen some investors that have always been holding their assets on bitcoin while some will definitely decided to have their emergency fund in it, which present us with the situation, where some will hold their investment assets on a non-custodial wallet while there emergency fund on a custodial storage as they can easily exchange it for their needs arising.

Mate, it is disastrous for any person to have their emergency funds in bitcoin. Para venture a person keeps emergency funds inside bitcoin and then an emergency happen in the time when bitcoin price have fall, and that emergency is so serious that it cannot wait. The person will have to sell that his bitcoin in loss so they can be able to treat that problem that cannot wait. And that is just a very shitty position for any person to find themselves inside

Even the person that created this topic already explained what he faced when he tried using bitcoin for keeping his emergency money and that is what can also happen to any body that tries the same thing.  An investor is supposed to always be prepared for emergency and this means that they should always make provision for emergency funds so that they will not be take by surprise

Yes currency value can go lower than it was, but it is better to accept that than to gamble and use put emergency funds inside something as bitcoin that can swing massively when you want to use that money.

There's no doubt, we don't need to undermine the power of an emergency funds. I am also an advocate of having an emergency funds, but there could be an exemption. Yes!
Someone who has been in bitcoin for more than a decade and has seen upto 3 bull runs or more can have all their funds in bitcoin. Whether bull run or bear market, bitcoin cannot go as low as it was before the 3 bull runs. I don't know if anyone is understanding me.

For instance, let me use 2022 for instance, someone who started investing from $15k can confidently spend from their bitcoin investment in as much as they continue investing because bitcoin is not going back to $15k.

My logic might not be firm or I might not be able to express myself well. What I mean is that, people who have actively invested in bitcoin for over 3 cycles are safe.

Emergency fund is a fund that needs to be built up and people must have it before using remaining money for their investments in Bitcoin or any other assets. Investment is only safe if investors can use their money for investment without pressure of getting profit daily, weekly or monthly as their regular income for spendings of regular utility bills.

They can build up their emergency fund with bitcoin, but split that part to the another part - that is investment portfolio - so that if they need money for emergency, they will only touch the first part. It's how they can take risk with Bitcoin emergency fund but it has risk of selling bitcoin with losses. So if they don't want to have situations of selling their Bitcoin emergency fund for loss, they can get rid of this idea which is not actually a good one.