Bitcoin can serve many different purposes, but I can assure you that an emergency fund isn't one of them.

Keeping emergency fund in Bitcoin or any other highly volatile asset is a terrible idea and goes against some basic financial principles. Emergency fund isn't there to make you money or beat inflation. Its a financial cushion that helps you handle unexpected situations without having to sell your asset or mess up your financial plan.

These people are just gambling with their lives, hoping to get rich quickly.

Knowing that Bitcoin is volatile. It is enough for everyone to understand that it is very wrong to invest all we have in Bitcoin because, when an emergency appears, where are we going to get the money to solve it? Definitely, we are going to visit our wallet and sell some part of, or probably all of, our Bitcoin investment.The point is that during that period, the price of Bitcoin may be down, which will also make us lose money. We have no choice but to sell because we need the money to solve our problems.That is the part we should know: emergency funds are very important, and they should never be invested in Bitcoin. The money that should be invested in Bitcoin should come from discretionary funds, not money that we may need to use at any time.As for me, over 20% of my money is saved in fiat currency, and I also have a percentage saved in USDT. I believe that should also help me tackle any future emergency problems.

This is why I don't like emergency fund to be in Bitcoin because of its volatility. Emergency does not announce itself when it comes up so one can prepare. If it comes when the market is down, the value of your fund would down too and you would lose if sell Bitcoin when the price is down to solve the issue. For this reason, I prefer emergency fund in fiat or stablecoin.

I have a more practical way of looking at things. My BTC investment is untouchable; I don't touch it, let alone use it for emergencies, unless it's an absolute last resort after exhausting every other option in fiat currency.

Having a dedicated savings fund preferably in stablecoins is essential. Why? Having your emergency fund in BTC isn't inherently bad, but if you hit an emergency during a sharp market crash, you'll be forced to sell at a loss. Keeping emergency funds completely separate from BTC makes things much cleaner and far less risky when you actually need cash.

The thing you mentioned at the end must also stand out when someone is making such a decision, because there are no promises or even guarantee for when one is going to get their profits from their Bitcoin investments. This means that sometimes you may get some profits even within a day, and sometimes it may take years for you to get some profits and throughout the waiting period, your investment could be at a loss, which means that you won't be able to liquidate your assets and use them for an emergency because you wouldn't want to lose any money by doing that.

A wise person will always make sure that they first have some funds saved for emergencies, and they don't touch them except when there is an emergency, then they save some for general savings, which they can use for miscellenous things in whatever time in future they want to use it, and then, finally, they start saving up money separately for investments, because they are not supposed to use their savings or emergency funds for making investments since that's not what they are supposed to be used for.

Come on, dude, why chose to put everything into bitcoin because that's not the best way to approach Bitcoin. Although it's not bad if you want to lup sum provided you not are investing all the money you have on you in Bitcoin.

Imo, I would advise you to go with the ongoing Bitcoin acculturation using the DCA method until you reach your target, because you must definitely have an amount you want to invest in bitcoin and hold it for the long term.

It is also not advisable to keep your emergency fund in Bitcoin, your emergency fund could kept in a stable currency. And stop thinking you won't have emergency, because anything can happen.

I would advise you invest in bitcoin with your discretionary income after you must have settled all your needs and expenses, and invest your discretionary income this way 50% should go to Bitcoin, 20% should go into your savings account, and 30% should go to your emergency fund.

Having plans for keeping your bitcoin investment portfolio untouched by emergency is very good. It's good because you will never have to sell your bitcoins with money loss because of emergency, and it is also helpful that you already had emergency fund together with your bitcoin investment portfolio.

Between stablecoins and cash, I would prefer to have cash for my emergency fund rather than stablecoins. Because stablecoins can be frozen in my self-custodial wallets, so it's very risky to store all my money in emergency fund in a form of stablecoins.

I would like to have my emergency fund in 100% cash.
If I want to have both cash and stablecoins for my emergency fund, I would prefer to have more percentage in cash like 70% or 80% in cash, and 30% or 20% in stablecoins.

Can stablecoins be frozen by issuers?

No matter how crazy I become about investing in Bitcoin I would never invest my 100% in Bitcoin because it might me make to sell at the wrong time just to attend to the emergency, I consider my Bitcoin investments as a future funds not emergency funds. And I hope newbies aren't also holding Bitcoin for emergency because that would be very wrong, I have seen investors that only invest half of their finances in Bitcoin because to them Bitcoin doesn't always give you back what you put in it and for me I have at least 20% of my finances for emergencies.

Emergencies can happen at any time; no one knows. It could happen tomorrow, next month, or tonight. So, even though emergency funds typically sit untouched for a long time, I still think it's important to have cash ready.
If it were me, I'd prefer to have it in a mix: 30% cash and 70% bitcoin split. At least I'd still have cash available for immediate needs, while the rest could be kept for the long term. And since the majority is in Bitcoin, I can expect that this entire emergency fund will remain intact against inflation over the long term.

Emergency funds is different from bitcoin investment, they both serve different purposes most especially the emergency funds just as the name implies it’s a fund set aside for use when in an emergency situation only. The reason why investors do set some funds aside for emergency is to enable them not to be tampering their bitcoin investment when they are in any emergency situations. Most people prefer to keep part of their emergency funds In bitcoin, some part in a physical assets like land or any valuable property such that when they encounter emergency situations they either sell the property or physical assets to generate money to solve the situation. For me, which ever way an investor choose to keep his emergency funds is not really a problem but what matters most is to ensure that wherever it’s been kept can easily be recovered and accessible by the investor when needed. Investors goals In bitcoin investment and emergency funds  should be stated clearly, if someone is keeping funds in bitcoin for emergency purposes then that should not to be called an investment because bitcoin investment is a long term investment which is meant to be kept for a long term growth or profit. So, if an investor starts using his bitcoin as emergency funds then it  longer align with the purpose of bitcoin investment.