Should I take my rainy day fund out of the savings account it’s currently in, and instead hold it in bitcoins?
You’ve been living under a rock — or merely avoiding the Internet — if you weren’t inundated with Bitcoin chatter over the past year.
Bitcoin is peer-to-peer technology used to move around digital cryptocurrency of the same name.
By design, the supply is limited, predictable and controlled by no central bank, leading some to view it as an alternative currency, while its history of price volatility appears reminiscent of speculation usually reserved for commodities.
An important data point in that discussion: Overstock.com recently announced that by mid-2014, they would became the largest store to accept bitcoins as payment. That said, from my read, it sounds like Overstock will use the third party vendor Coinbase to immediately convert bitcoins used for purchase into dollars, meaning they leave all of the volatility risk with customers.
I’ve done a terrible job of both describing the technology behind Bitcoin and summarizing the body of opinion, and for that I apologize. The Bitcoin wiki appears a wealth of knowledge if you want to dig deeper.
An emergency fund is money I keep liquid enough to access in the event of an emergency such as the unexpected loss of my job or unexpected medical expenses.
So, should I move my emergency fund to Bitcoin?
No, no I should not.
Have a good weekend everyone 🙂