Of course, when any of us get into our elderly years where we might be more fragile and/or subjected to needs of liquidity, we may well need to keep some of our extra value in cash.. but like you said, if you already have a decent amount in other assets, then you may well be able to run the risk of having most of the rest, even the cushion in bitcoin.
When I speak of taking dividends, I don't mean necessarily taking them and holding them in fiat currencies. It's still best to hold them as Bitcoin.
It's more a matter of being able to buy that second house, business, vehicle, or other lifestyle improvement without wiping out your nest egg.
Of course you keep your cushion in Bitcoin. Unfortunately, purchasing real estate, vehicles, travel, etc usually requires fiat currencies. I was lucky to be able to buy my principal vehicle, my John Deere Gator, with Bitcoin, avoiding the need to convert to dollars to make the purchase. Of course my lake, city house, dental implants and other major purchases required dollars or pesos.
I usually keep only a minimum dollar balance on hand for purchases and in my bank account to avoid bank charges and pay utility bills, etc and only buy dollars or pesos as need be.
