In a nutshell know and act within the means of your Risk Tolerance.
We manage our money and we know the risk under which we are exposing ourselves, but we have to see things from the correct point of view, there are no risks in bitcoin, only if you are going to make a quick investment but that does not make sense, if you buy bitcoin is long-term to make the investment as it is, if I buy today, my investment should be to seek benefits in about 3 or 4 years, but since we are so close to the halving it is a gift that we buy now because it may be that It will rise a lot, in 2024 or 2025, but that will rise, there is no doubt about that, so for me right now it is below $73k? It's a dip for me, is bitcoin going down? It is a dip for me, if it goes down more it is another dip for me, you have to buy in stages to then see the benefits.
Bitcoin may not be so risky like people think of it to be, these has delayed many people who are to invest in Bitcoin. Bitcoin investment would require a bit of strategic knowledge, anyone who invest without even a little knowledge about Bitcoin and its risk management is likely to be under the pressure when the price DIP, seeing his/her investment drop in dollar value, they assume being at loss where as it is the most common attribute of Bitcoin, experiencing volatility. Another factor at which people tend to see Bitcoin as being risky is when they purchase massively at the top of the market, not understanding how the cycle works and seeing the DIP part of the cycle they begin to question if literally it was a good idea to invest in Bitcoin, these has brought the advantages of strategically applying the DCA approach rather than lump buy, likely they have to purchase at regular intervals whereas it falls into a cycle of purchasing a DIP, so the thought of being at loss is ruined and even the investor would be delighted to keep on investing.
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
When you talk about storing your Emergency funds to other assets, if i may asked what other assets could be good to store our Emergency funds?, actually one thing you should also consider is that most assets has a very high inflation and if perhaps you store all your emergency funds for months and you decided to make use of it and realize that 10% has left from your emergency funds, what then will become your emergency funds?. So actually emergency funds shouldn't be regarded as something or funds that could yield profit but in other words is being established for a certain purpose, so storing it on assets is totally not advisable.
These has been talked about already, holding emergency funds as an asset, be it Bitcoin or any other than cash is not to be considered appropriate as an investor who understands the market and how volatile it can be just within a short period of time, where as the funds can be urgently needed and it has dipped very low to a point where selling wouldn't be an option then it becomes a problem which may like affect our investment. Emergency funds are to be held as per countries Fiat and nothing more.