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Even though I suggest that it is very stupid to cash out too many bitcoin too early, a lot of people engage in this kind of conduct and some of it has to do with taking profits, or other investment ideas or even thoughts of buying back cheaper, and maybe those ideas are not really bad in themselves because it is very common for normies to engage in that kind of conduct. I did it myself prior to bitcoin with a variety of other investments that I had, and sometimes it is not realized to be a mistake until quite a long time later, and it is really difficult to reverse or even to realize that you are doing it because it makes so much sense when you did engage in that kind of conduct.
And I have never seen a lot of these people that sold all of their bitcoins to take profit ever come back to buy back bitcoin when it starts lowering in prices, most of these people that are saying that they're doing this are either thinking that when the lowest price is already present that it's going to get much lower and then they end up regretting it and then buying when the current price is double the last time that they've hesitated to buy. I do think that it's stupid too to cash out too early but I do believe in the balance that you also should never marry the bag, you don want to be sticking too long to bitcoin without getting some profit along the way.
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Emergency fund is not just for health purposes, and yeah the larger your bitcoin investment the more necessity to have an emergency fund that is at minimum 3 months... and many suggest 3-6 months or longer, but surely some folks call their funds an emergency fund when they are also referring to reserves and float. Now of course, you can short-cut some parts of the emergency fund, but if you completely abandon the idea, you are then a kind of walking time-bomb and only asking for trouble...but you might have some kind of emergency fund that you are not considering to be an emergency fund, and that is fine too, if you have some resources that you are able to draw upon when you have cash shortages, because you should not ever get into circumstances in which you have to sell some or all of your BTC at atime that is anything other than your completely own choosing... and sure, if you have been in bitcoin for long enough (your forum registration date shows December 2016) and your average cost per BTC is way below $10k, then maybe you are enough in profits that your BTC can serve as your emergency fund, but you still might feel bad if you have to sell some of them at a time that is not completely of your own choosing, and you will be the one to blame if you are not sufficiently/adequately protecting your own BTC stash (my lil precious).
That so-calle 3 months worth of emergency is not going to be adequate for when you have a health emergency and yes there's also the fact that the emergency money isn't just for health purposes but for me with a stable job, I don't think that I'd be considering any other reason to save up for emergency besides a medical or health related one. Regards to resources that I can draw upon, I have some collectibles that I can sell for a profit when I bought them so in a way I do have what you might call an unconventional emergency fund.
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Personal finances are skills that many people have, but they might not have those skills very well refined, but it should be in the capacity for anyone to learn because a lot of the concepts are somewhat basic and don't really require high level skills, but still some people don't even try to learn these kinds of basics..so some of that revolves around personal choices, and just lacking of discipline.. and so frequently it is not easy for people to work on skills to stay focused, even though it is within skills that most people would be able to learn.
This personal finance thing should start young, that's why some people that learn it later have a hard time keeping it up because besides refining their skill for finance, they're also honing their discipline to follow the right thing to do so they can be financially healthy because being one is a really difficult thing to do and I agree that the lack in discipline is a big factor.