Investing with your emergency fund is not a total bad idea at all because after you have might paid all your bills and the money remaining becomes your discretionary income and inside that your discretionary income you can still generate out your emergency fund and started investing in the last 6 months and think you to invest using your emergency fund so that it multiple more income since you are not using it at the main time, you can invest with the emergency fund and tage it emergency fund which means it can be pull out if incase of unforeseen circumstances that might happen, so the reason why we should invest emergency fund is to back your really investment.
If I get you right, what you are saying is that as we are building our emergency funds, we can also invest with it since we are not using it, so that it can build and increase our Bitcoin accumulation very fast? Sincerely bro, this a wrong approach to the Bitcoin investment and it's a NO for me. Don't forget that the main reason for building up your emergency funds is to help you stay long and stronger in your accumulation period..your emergency funds helps you to be able to buy Bitcoin and Hodl for a long term because, surely life will throw it's weights and challenges on you, and when this happens, it is your emergency funds that you use to survive and settle all this unplanned situations..
So if for any reason you want to increase your Bitcoin holdings very fast, because you are not using your emergency funds, then you start buying aggressively with your emergency funds, the question is, what will you do when challenges come, like accident, you got layed off from work, sudden critical sickness etc, how do you survive? This will make you pull off that same Bitcoin you accumulated prematurely, and this could be in loss, which is never a proper investment strategy.
The best is that while investing, we should keep building up our emergency funds and also other back up funds alongside. An investor can also save some extra cash from his discretionary income which he could also use to buy the Dip if it comes specially. Using your emergency funds to buy Bitcoin when you are not using it is very wrong and can cause you to lose your Bitcoin holdings too quickly