Storing all assets in Bitcoin is a good decision (to be faster in a heart attack and higher stress) lol.
With a fluctuating market, it is certainly not a good option for financial health.
This is the worst financial strategy to store all your assets in bitcoin because when their is a drastic dump in price,it will look like your doom day has arrived. A very bad way of financial management.
Part of the rationale to diversify at least a little bit in terms of NOT holding all your wealth in one asset class.. especially one as volatile as bitcoin, even though surely there are some people who engage in such a practice.. which does not seem to be good financial management or even advisable absent some pretty special circumstances. such as perhaps if they were to have a pretty guaranteed cashflow that allows them to NOT have to be reliant upon the value of their investment in any kind of way... but even then, for sure, there does seem to be some value in any ability that any of us might retain to be able to continue to buy on the dip or to DCA during dipping times, rather than completely losing confidence because our investment might have had gone down greatly.. such as greater than 70% and stayed at such depressed levels for extended periods of time.. including potential uncertainties regarding if such asset might continue to drop in value further and for much longer periods, too.
Those who store all their asset in bitcoin will end up not being able to hold all their bitcoin for a very long time,they will only be able to hold little fraction of 20% after a long time, due to the fact that we will be faced with an unforeseen financial challenges and before you know it since this is there only assets they will have no any other option but to use from their portfolio to tackle the problem.
Sure.. but there is still a balance even if choosing when to start diversifying if at all. Of course, a very early investor might spend a lot of time in which s/he has no other investment except for bitcoin, so it does not make a lot of sense to diversify for the mere sake of diversifying - even though I do seem to understand and agree with your point that at minimum, there may well be a need for some cash reserves in order to be able to take advantage of likely ongoing and potentially severe BTC price fluctuations and surely one of the ONLY thing that might get closed to being guaranteed in bitcoin is that it is going to be volatile.. even if we might not know exactly in what direction such volatility might end up happening.
It is only those who have overcome financial stability that can store all their asset in bitcoin. I don't think it will even be possible to store all your assets in bitcoin and still be able to hold for long. Even the whales or someone that have overcome financial stability is because he has a business or businesses that is fetching him his funds daily. If this type of person has like $1M and invest all into bitcoin doesn't mean that he has invested all his asset in bitcoin because his business is still on.
It seems to me that the vast majority of more well to do investors (and seemingly smarter investors) are likely going to have a certain amount of diversification in the assets that they hold - but philosophies in regards to how much diversification is preferable is going to have a decently large amount of variance in terms of both personal preferences and also in terms of some personal characteristics of the investor.. so I doubt that there is any exact one stop shopping when it comes to the question of diversification or not or how much to do it.. and could become more problematic for investment newbies to be believing that they need to diversify for the mere sake of diversifying. which largely might end up reflecting more that they both don't know what the fuck they are doing, they are diluting their investments and also they might just be blindly throwing darts with some kind of expectation that one or more of them might get lucky.
What I want people to understand is that if you are not the patient type with your savings, you will find it difficult to hold for long. Let's look into Laszlo case 13yrs ago,he used 10,000btc to purchase just two pizzas and today 1btc is worth $26+.
I am not sure if that is a good example. I doubt that Lazlo is having very many regrets.. he likely has plenty of dee cornz... and surely in the early days someone needed to be spending some bitcoin in order to help to figure out price and to just get bitcoin exchanging hands beyond the geeks who were mining it (and one of those earliest mining geeks was Lazlo).. and I am pretty sure that there are other stories about Lazlo having plenty of bitcoin too.. but no need to really get into those kinds of stories here.
I do understand your point regarding guys who sell way too many bitcoin too soon, and make all kinds of errors in which they are either forced out of their bitcoin or they fail/refuse to recognize bitcoin's value because they may well be valuing bitcoin too much in terms of wanting to buy inferior goods or services or to make inferior investments rather than hanging onto some of their coins and spending their dollars or other fiat first - or maybe sometimes, if they had given the value of bitcoin matter some thought (in terms of potential future value), they may well even have some other assets that they could be spending, rather than spending their bitcoin.
Imagine if he had all those btc with him presently. Imagine someone has 0.1btc right now and was able to accumulate more bitcoin gradually and does DCA till he realizes 1btc and hold it for 13yrs,he will be very happy seeing the worth of his investment.
You know that past performance does not guarantee future results, and for sure many of us likely need to go through some balancing in terms of how we are going to manage our BTC - and sure, largely I do not disagree with you, since I have spent the last 9.5 years mostly accumulating bitcoin, but I also did most of my BTC accumulation in the first few years, so sometimes at a certain point, any of us might be able to figure out that we have enough bitcoin, so part of any balance that we might strike is going to come from a certain amount of trying to figure out how much of a balance of BTC that we might try to keep, and perhaps trying to plan to make sure that we are not giving up too much BTC along the way.. but if we had figured out in 2015 that we needed to get to 100 BTC in order to be at fuck you status if the 200 moving weekly average reaches $10k and then we would be a millionaire and we would be set. However, in 2020, we realize that maybe we might need to be at an evaluation of $2 million to be a fuck you status since $1 million might not work anymore. So then part of the question might be regarding whether we might need more bitcoin or not, if we had already reached our earlier goal and maybe we even met the later redefined goal, since currently it takes only around 80 BTC to be at $2million valuation..and so we are largely above fuck you status.. if that might be part of our aspiration in terms of both having enough and then figuring out if we need to exceed those amounts or where we might believe that we might want to hold some of our other assets, if we might not have anything other than bitcoin.. but as we already discussed, there may well likely be some preference to start to diversify once we start to build our investment portfolio to higher and higher amounts, and maybe at a certain point, we have way more than we had thought that we would end up needing (and that would not be a bad problem to have).
But yeah if you are referring to members in their earlier accumulation years, they may well be struggling to get up to 1 BTC, and maybe it could take years and years and years to get up to 1 BTC, and maybe they might be better off setting lower accumulation goals for themselves, if they happen to just be getting started in their BTC accumulation journey.