With all the talk about the long term nature of our crypto investment, it is possible to sometimes forget that the asset can serve a variety of needs per time. Many individuals are already turning towards crypto as part of their retirement plans, and some are steadily building up assets which they believe will pay off in the near term.

Developing a long term plan with crypto is easier for many reasons. Firstly, it is obvious that many projects are yet to reach their full potential and have room for improvement in the future. Improvements also comes with an increment in value, which means an even better deal in terms of returns for a potential retirement plan.

But crypto also has some more immediate uses per individual. While it definitely isn't advisable to sell all your long term assets, there are some use cases that warrant near term uses and precision planning. For the most part, fiat is still the most preferred choice for immediate spending, even though some try to gradually make the transition to crypto.

In the case of an unexpected occurrence though, it often pays to set some money aside for that particular situation whether the need arises or not. It is smart to do so, as getting caught off guard is not a pleasant experience. Luckily many people already do this and have significant amounts stashed in case of any emergency. For others though, merely growing such funds can be quite the challenge.

This is because of the immediate nature of fiat. Be it cash or money in the bank account, it can be pretty difficult to simply set aside. Alternatively, one can lock such funds but it then may not be readily available for use. If one does not have the Kantian discipline required to set those funds aside, crypto may provide an alternative.

Versatile

I have sometimes turned to my stable coin assets in the case of an emergency. The advantage to this is that there is ample time to build, as well as relative ease of liquidating such funds. Since we already view crypto as a long term asset, many are not in a hurry to cash out; this is the perfect trait for a potential emergency fund that first of all needs to be available in order to serve its purpose.

Conclusion

I don't really have a reason in particular why emergency funds came to my mind, just that I feel it is important to have such a fund readily available, and I can see how crypto can play a significant role in the process. It probably is a good idea to have some stable coin assets that can be slowly built overtime which we can simply turn to in times of need.