You seem to be struggling with the idea of an emergency fund.

Yeah, of course, people are not used to maintaining an emergency fund, and surely many times such emergency funds are not easy to build or to maintain, especially if the money is tending to debase with such rapidity.

For sure, there is balancing going on, and you seem to believe that you are better off having an emergency fund a smaller amount so that your money can be working.. such as being in bitcoin, and sure maybe, if someone is new to investing, they may well choose to maintain a way smaller emergency fund because they hardly have any investment size....  and sure, part of the reason that a lot of newbies will end up getting recked out of their investment is because they did not maintain a large enough emergency fund to deal with unexpected circumstances.. and it happens all of the time, especially for newbies who have no other sources to draw upon if their cashflow dries up or is not sufficient to cover their expenses besides whatever small emergency fund they have and their investments (perhaps only into bitcoin), so they could end up getting fucked pretty badly to spend a significant time building their investment and not having enough reserves to cover short-falls in their cashflow.

Do I need to present another example? 

Let's say that a person started investing $100 per week into bitcoin in October 2019... So he started at a pretty reasonable price and the BTC price largely went up from October 2019 until late 2021 and then ended up correcting a lot during 2022, but he kept investing into bitcoin and thinking that a new ATH would come, and BTC prices would reach $100k or more, but the prices were already in the lower $40ks and upper $30ks.  So maybe he ends up investing nearly $13k into bitcoin and even having right around 0.8 BTC.. but at the same time he had not been maintaining a very large emergency fund... and so we know what ended up happening from May 2022 to December 2022, and if he might not have been able to cover that period, and he kept drawing from his cash, then he may well end up depleting large parts of his BTC stash.

So what happens if during that time (even in early 2022), he is already suffering from cashflow issues, and he believes that he can handle the matter and from our earlier hypothetical, his expenses are around $500 per month and his cash flow had historically been $300 to $1,200 with most of the time being around $500, but then maybe he is ONLY getting $300 or maybe even some worse circumstances, and some of his expenses are going up too.. due to the Emergency status.

So he has no choice but to start to dip into whatever emergency fund that he has left, and the BTC price keeps dropping? and so by May 2022 the price is dropping a lot, and maybe he would end up having to sell bitcoin at a time and price that ends up NOT being very convenient... and he is selling as little BTC as he can, but he does not have complete control over the situation and if his situation does not resolve and he keeps selling as little of his bitcoin as possible he could still end up with very few bitcoin and even inabilities to replace whatever he sold when the BTC price starts resuming up in 2023. 

I am not trying to say that an emergency fund is going to resolve everything, and surely there can be various backups that people have, but if you are working with the hypothetical, you should be able to figure out some reasons in which it may be a good idea having an emergency fund, even though maybe it is not a very high likelihood that you would end up using it.. but at the same time, having to sell any of your BTC during periods that you should be either accumulating or at least holding would not be helpful to your longer term prospects, and frequently poor people never are able to get rich in part because they fail/refuse to maintain a sufficient/adequate emergency fund, and they end up using their investments (such as BTC) as their emergency fund.