Just bought more BCH and LTC. I have plenty of BTC and other alts. First time my BTC stash is under 40% of my crypto holdings. I'm all about diversification...
At this stage there are more old school bitcoiners that sank their battleship in shit coins than there are old schoolers left. You have the goose that lays the golden egg and you are willingly giving it up. Not a smart idea. The internet is a winner takes all economy.
You can't see into the future so I don't know how you can claim it's not a smart idea. So far it has worked out and if I exchange my alts back to BTC I'd have more BTC.
Diversifying is not only smart. It is usually more profitable. Get with the program.
I have insurance, which is mostly Monero and ETH and less than 10% of my portfolio. This protects me in case of a wipe out event in Bitcoin. But we both know that when the first Bitcoin ETF is announced early next year, Bitcoin will go vertical and your BTC/Alt pairs will collapse, including my Monero and ETH pairs.
I disagree that we both know that will happen. The only alts I own are mostly in the top 25 by market cap and few outliers that I like the concept of so I have faith in them. There's space for alts and master Bitcoin. I'm still HODLING some Bitcoin from 2014 when I got in so I love Bitcoin. I just love diversification and playing the game also it makes life more interesting.
Edit: Also if my alts keep gaining on BTC in terms of their exchange rate I may convert them all back to BTC only time will tell. I don't have an allegiance to one coin. I know many on here do and that's great, but that's not my style.
There are alts with fairly predictable fundamentals and bands of valuations. Those can be used as a hedge without being an "insurance" but a proper investment instead. With a market as irrational as crypto the token values might differ from the actual valuation, but that just creates arbitrage opportunities for those in the know. So the assessment that diversification in crypto means buying an insurance as a premium is patently false.