Some people become more sloppy merely because their BTC are in profits, so all of a sudden they start to consider that they could tap into their BTC or that they do not need an emergency fund, and if shit hits the fan, they could just sell some of their BTC to take care of matters, and sure that is going to work and they are going to make profits, but they also might end up selling way too many bitcoin too soon and never being able to replace the BTC that they sold at a time that was not really of their own choosing, but instead was at a time that they were forced into because they failed/refused to adequately maintain a financial cushion, whether it is called an emergency fund, reserves and/or cash floats.
Sorry for my late response to your reply on this my comments with @neobanks. am glad you explained in detail for clarity. This analysis you have made is a clear and presise explanation that need not to ponder upon by marking it vigorous, cumbersome or contradictory. Anybody who take advantage of his accumulated emergency fund, by using or Investing it on bitcoin may surely end up selling it when emergency occur and may still sell his Bitcoin to get back the emergency fund. And one funny thing is that selling it is never the problem but it will open a way of frequent selling because your mind will always be there. One thing about human is that when ever they start something it becomes difficult to stop because their mind will always be there having that notion that I still have my profite on Bitcoin so I can sell at any given time and you may end up not having an emergency fund any more. Thats why it is good to set aside the emergency fund to avoid anything that will Leed to touching btc. Infact btc HODLing is sorpos to to be even sold for any reason other than the expected time of harvest just like a farmer will plant a seed and allow it to germinate till time of harvest, if not married no need for harvest otherwise you harvest prematurely that is why we should totally avoid any thing that will make us sell when the time is not yet right.
3-6 months of an emergency fund is a good general framework that is always maintained and only used for emergencies, and the reason that it is always able to be maintained is because you will also have other funds, such as reserve funds that you can spend from and if you happen to spend from some of your emergency funds, then you work towards immediately replenishing those funds to be prepared for if an actual emergency comes after you had spent from those emergency funds.
At some point I was a little bit not clear but this last part of your post solved it all. The aspect o mean is the aspect of the emergency and reserved fund and the 3 to 6 months time frame of emergency fund. That is to say one may surely need to have a seperate fund said emergency fund. The emergency fund may be accumulated withing the time time frame of 3,6, 7 or 8 months depending on individual differences and after which the person may decide to work on reserved fund on a regular basis. The reserve fund functions as a multi porpos fund which can be used to invest on bitcoin and also used in replacement of used emergency fund just like a middle man between the both party. I really understand the concept.i was thinking emergency fund could serve as a reserve fund altogether but thanks for your clarity.