Many times emergency funds are form of cash that are very liquid but they may well not be earning any interest or gaining value, so there could be some sense that those funds are neither working for you and that they might be losing value as fast as you can build them up, so in that sense, you might have quite a bit of hesitancy in holding very much value in cash and/or cash equivalents,
I was considering a possibility where we can store our emergency funds in other asset that could retain the value we put in it, since generally cash suffers from inflation and you know there are possibilities that our emergency funds would not be used in very long period of time and could sit around for up to 6 months without been used to do anything especially if we follow a strict rule to only touch it when we have a real emergency, but the flaw to this plan IMO would be that we expect our emergency fund to be in some way very readily available when we want to use or when we encounter an emergency cause this could potentially be a huge problem for us if our emergency fund is not around when we want it. And secondly I think there are very few asset that we can consider to be very stable to hold value in such short term and how easily it would be for us to convert back to fait if we need it, this is just an idea so I would like to hear your opinion on it or if it should be written off entirely?
No that's a bad idea. The reason for having an emergency fund is so that we can have quick access to cash during an emergency. The availability of the cash during pressing times is what makes it an emergency fund. I understand that you are looking for a way so that inflation wont meet up with the cash kept for emergency funds since it looks somehow like savings in general. But think of it the other way, cash value is more stable and wont experience sudden drops like other assets would do.
Instead of what you plan, retain your cash for emergencies funds and see if you can diversify with percentage of cash that you put inside bitcoin investment (maybe 5-10% ) out of the 30% to invest in short term assets that might offer slightly higher or average returns which may be used to support the emergency fund and foster the rate at which you accumulate your bitcoin. This way you can maintain a stable financial income flow while buying more bitcoin.