But after seeing how you explained it, and also from what yixichloro2xx already pointed out earlier, I can see now that Bitcoin does not really play by those same rules.
Bitcoin is similar to other places that you might put money, yet it tends to be quite volatile, and if we give a priority to trying to hold onto our bitcoin for 4-10 years or longer, then we likely have to maintain even a greater cash cushion than we might have had in our previous practices.. But if we might not be very serious about bitcoin or we want to be sloppy and/or take chances, then we might end up engaged in practices where we are using our bitcoin as our emergency fund, and a lot of guys have historically sold bitcoin too early because they were sloppy in their cashflow management and not keeping enough of a cash cushion, so they end up getting themselves in a place where they have to sell some or all of their bitcoin, and they might even still be selling their bitcoin at a profit, but they might also be selling at a bad time in which the price is prone to go up after they sell and then they end up either not being able to replace the bitcoin that they sold or they might even give up on bitcoin because they cannot easily get back to the position that they had been at earlier.
This is in fact one of the major pitfalls which a lot of folks run into when investing in Bitcoin, their inability to separate it from their day to day liquidity needs. Due to the volatility of Bitcoin, it works better as long term asset, and this same volatility is also one of the reasons it is considered as a terrible way to consider putting their Emergency fund. If there's no enough cash in hand and a potential emergency that requires immediate financial attention, there's definitely no guarantee that their stash would be safe as it means that they'll definitely opt to sell part of their Bitcoin at an inappropriate time. Some feel that it's justifiable if they sell in profits, but truth remains that if the price goes upward just after selling, it'll be almost impossible to reaccumulate the same position again, which of course leads to nothing but regrets, some folks might even feel dissuaded or lose the zeal to continue investing in Bitcoin and just drop out of Bitcoin altogether.
This is literally the main reason it is always emphasized or suggested to build a real buffer in cash or in an asset that's not as volatile as Bitcoin or other shitcoins. This gives an investor the stability to wait out and hold through the storm of volatility and potential downtowns, having the patience to hold and wait for the coming cycles to actually play out. Most people who do not have that financial cushion often end up reacting more to short term price volatility, rather than focusing more on the long term/future potentials of the asset. It's crucial to acknowledge the fact that Bitcoin Investing isn't really about having that conviction in the asset, it's also more likely about having that discipline in your personal financial management. Most of the investors who actually tend to make it/succeed in the Bitcoin are mostly those who literally make investing in Bitcoin, because they'll never consider touching their investment, let alone feel pressured or threatened by whatever turn the market choose to take, since their focus is already locked on the long term potential of the asset.