There are unexpected situations that your emergency funds might not really be enough to sort out and at such phases you would have no other choice than to sell your Bitcoin. I see the other options added like borrowing money or selling properties, while these might seem like good options they might also come at a price or cause more inconvenience, let's say you end up borrowing money you might end up paying back with interest or maybe even worse, it is possible to have some issues that might delay the whole your payment which makes your loan amount increased. The best option would be to sell your coins and then accumulate gradually when you become stable.
As a Bitcoin investor of course we need to have a mindset to prioritize or maintain short-term finances without destroying our long-term position that's what matters for now so that when we face such situations, we don’t easily panic.
I also agree with your statement that when such a situation arises, selling some Bitcoin could be the best option because it avoids interest-bearing debt and the risk of late payments that could increase our own burden. However, what we should do is still sell in a measured way only as much as is truly needed while keeping some holdings so you don’t exit the market entirely.
But if you really want to borrow money or sell other assets that can be an alternative if the interest rates are low and the loan term is short. Otherwise, the consequences can be pretty bad loan interest especially if there are delays can make your finances even worse. The bottom line is always use common sense when facing an urgent situation before making a decision because wrong choices often make us regret it later.
