This is absolutely right i do advice when investing in Bitcoin always invest in what you can afford to loss don't ever use emergency funds or borrowed money or ready the volatility of bitcoin has said it all that any one depending on short term hold it is a risky movement and an
financial obligation
Using one's emergency fund to accumulate or buy Bitcoin is just like going to commit suicide because definitely you won't go any far in the investment. Anyone who uses his or her emergency funds to invest,
the volatility of Bitcoin will humble the investor because that is not the right way to invest in Bitcoin.surely using emergency fund to invest in bitcoin is not advisable as that will be creating a loop hole that will affect such person if not replaced as soon as possible, but surely this got nothing to do with volatility as you have said @sotelorene. volatility is a normal casse when bitcoin rise and fall. the only problem in using emergency fund instead of discretion, is just exposing yourself at risk of not having enough emergency fund, which if any unforeseen contingency should occur, it will prompt you to dip dive into your bitcoin hodling which is not ideal for any bitcoin investor.
instead of an investor to invest his or her emergency fund in bitcoin when there is a DIP, which may put his or her investment portfolio at risk, the investor should rather invest with his or her reserve fund, for the investor we be at the safer side when he or she invest with there reserve fund rather than INVESTING with their emergency fund. For emergency fund is for short term need, such as personal and family expense, medical bills, car repair and many more, while reserve fund are for longer term needs, and reserve fund can be replace on time base on it purpose for longer term needs, so an invesor we have enough time to replace their reserve fund, but the investor may not be able to replace on time his or her emergency fund, and if their emergency fund is not replace on time, it can put their bitcoin investment portfolio at risk.
For emergency fund is very important to go along side with your bitcoin investment, if not you might end up selling your bitcoin at early stage of accumulation.