Indeed because investing in anything using emergency funds will not recommended. The mean of emergency funds is covering our urgent needs that need money so we can use that funds and fill it immediately. The emergency funds specifically for an urgent needs and not for other things. So we have emergency funds and a free money for the investment with other money that we prepare to fills each needs we have. If we can allocate the income to the right place and know how much money we can allocate, we can use the income proportionally.
It seems you misunderstood a point that people mostly invest without reserved money as their emergency fund. It's different than they have an emergency fund that was used for investment and I hope you see difference here.
At least people had emergency funds but later used it for investment is better than people who never minded about having an emergency fund. They practiced badly by lacking discipline to maintain their emergency funds but if they can improve their discipline, they can do it better in future.
For a first type of investors who have never minded of having an emergency fund, they must change their mindset and break this barrier first. Then they might have their first ever emergency fund and move on with same mistakes like a second type of investors aforementioned.
Definitely it’s always advisable not to hesitate on starting Bitcoin investment before starting to build emergency funds and reserve funds, which I think it’s a good strategy considering that we are a newbie starting to build a portfolio and trying to accumulate and hodl.
But i will admit it’s quite confusing and misleading for a newbie whose goal is to continue accumulating and build a portfolio and also having a strategy of implementing ways of having an emergency fund and latar investing that emergency funds, which I think it’s not a complete strategy and it’s no way better than someone who doesn’t have an emergency fund.
Emergency funds it’s mainly for emergency needs which we didn’t plan for, when they arises so it can help us avoiding using our Bitcoin reserves and help us to accumulate more and hodl.