Now coming to why you should form an emergency fund and what is its use, basically so that your investment is not irregular, that is why many investors form an emergency fund. The use of an emergency fund is when you have a financial crisis, but your investment may be irregular, so that an investor's Bitcoin investment is not irregular during a financial crisis, that is why those investors form an emergency fund with their own extra money and use it later. [Edited out]
Once an emergency fund is used, when the financial situation of the person is normal, then the amount of money that he took from the emergency fund and invested in Bitcoin can be added back to the emergency fund. This way, every investor will not have the possibility of irregular investment. Since I have used an emergency fund, I know that this is a really effective strategy for investing in Bitcoin consistently.
In fact, even if you don't invest in Bitcoin, it's important to create an emergency fund. Emergency funds are created for urgent needs, you may get sick at any moment and you will need money if you are sick, so if you have emergency funds it will not affect your investment. Maybe some investors reserve emergency funds to maintain regular investments, but it seems most investors reserve emergency funds for urgent needs. I personally reserve emergency funds for urgent needs, I do not reserve emergency funds to maintain continuity in investment. I will never buy bitcoins using emergency funds, because investing consistently in bitcoins is not mandatory.
I agree with you if actually you are referring of having an emergency fund at hands outside your Bitcoin portfolio but if you are referring to creating an emergency fund without creating the opportunity of investing in Bitcoin first before creating an emergency fund incase of unforeseen circumstances, i will said that i disagree with you because you can't create emergency fund in Bitcoin without having an investment first,
Having emergency fund does not necessarily mean that it will serve for your bitcoin investment alone, a Guy might have other business/ Investment aside from bitcoin investment or attempting to invest into other business of which emergency fund is also required while investing into this businesses so as to avoid tempering your business funds when there is emergency. Even if you're into real estate Business or other investment aside from bitcoin investment emergency fund is always required, so having emergency fund does not necessarily mean that it will serve for only one purpose that's (bitcoin investment) But can be used in other Investments/ business In order to safeguard your business/ Investment incase of anything.