Some people fail to understand that emergency funds are meant for emergency situations and if they must diversify they can't rely on their emergency funds else they will compromise all their investments. Managing two investment even with emergency funds is not so easy then think of managing them without any emergency funds.
Putting your emergency funds into Gold is not ideal and can't be regarded as emergency fund anymore rather another form of investment on it own. Doing so will definitely affect your investment when emergency situations come it make managing it very difficult and you will ending touching part of your investment which will lead to your investment plan being compromised and your investment goals not achieved.
Agree with you. Emergency funds for urgent situation so from the name, we should be understand that we prepare the funds for our urgent situation. All people will face an urgent situation that need money so when we ready with that, we don't have to think to use our money for daily need because we have emergency fund. We can cover it without a problem and we don't disrupt our investment, any investment not just Bitcoin investment.
Focus in Bitcoin investment, only one investment, will be better than manage many investment for diversifying especially if we are not smart enough how to manage it. But that is a choice and people are free to decide.