I think that depends on the tax system. We have a bad CGT deal in the UK, but it only applies if the BTC has appreciated in value and outperformed cash.

I think the real killer is if the price crabs for a couple years, but you're flip-flopping between exchanges and taking a ~1% haircut with each transaction.

Having readily accessible cash (rather than BtC) is so important and 3-month is a good amount. The tax implications around selling BTC (as mentioned in the OP) are pretty debilitating and outweigh any opportunity cost fears.

carlosfandango

However there were still many instances where I needed to sell BTC to cover larger expenses. This can be expensive due to transaction and trading fees.

As of now I essentually have a 3-month emergency fund in cash, with almost everything else in cold storage BTC. But the opportunity cost of that not sitting in BTC eats away at me.

bitcoin

Credit Cards & #GetOnZero

I did this for a while:

1. Pay for everything on credit card
2. Pay off balance with monthly salary
3. Convert surplus into BTC

However there were still many instances where I needed to sell BTC to cover larger expenses. This can be expensive due to transaction and trading fees.

As of now I essentually have a 3-month emergency fund in cash, with almost everything else in cold storage BTC. But the opportunity cost of that not sitting in BTC eats away at me.