[edited out]
It's not because someone is, to use your word, "poor" that different rules apply to him. What I said was the difference in the amount of capital. If an investor has $100,000,000, he can diversify it to 50 different investments and make 30% out of his capital in one year, the gain would be $30,000,000, which is very good.
Even if you might otherwise be making some valid points, it seems to be going out on a tangent to get too far into those kinds of outrageously BIG numbers, and I doubt that people with that level of capital are participating in threads like this.. or even that people who might be engaging in threads like this should be our attempted audience.. even though surely everyone might have to adjust the numbers to their own situation.
so yeah, maybe we might say poor would be those people who are struggling to figure out how much disposable income they have, but if we might be getting into BIGGER numbers, then we could still use $10 million as the top of our range rather than $100 million.. but more practically, we likely have people struggling to get up to $100k worth of value accumulation, yet we know that people who have been in bitcoin might have had invested less than $10k in the last 10 years.. maybe even as late as 2015 and pretty easily gotten to millionaire status... just to flesh that out, $10k / $250 = 40 BTC and at today's prices 40 BTC would be worth right around $1.16 million.
I don't know what to say to that in the context of my post. You're taking it out of context. Haha.
Ok.. let me try to work with your $100million number and maybe round it down to $10 million or $1million.
I doubt that diversification allows you to make greater returns, even though it might make profits if some of the assets are invested into items that are growing well... It would likely not make any sense to invest equally into 50 assets, but maybe for the sake of the hypothetical, there could be $2million invested in each asset, but if all (except a handful) of the assets just performed at the normal market rate (6% to 12%), then the outperforming assets would have to really outshine the others in order to make up for the difference in order to get 30% overall return, and again, I doubt that diversification gives you greater returns but instead is an attempt to preserve principle.. and to be conservative and to not be too aggressive, so the more diversification that you have, the more likelihood that even if you have stellar performers, you are going to have low performers that offset them, even though we know sometimes that everything is going up at the same time, but some things are going up more and somethings are going up less.
I neither said, not suggested, that diversification will allow your imvestment to make greater returns. In fact, I said it wouldn't, and actually discouraged the other poster from doing it especially if his/her capital is small. We are not asset managers who manage billions. That kind of money needs diversification to reduce volatility and protect their capital against losses. We plebs should actually want more volatility. Although, it will increase risk, it will also increase our probabilities to make life-changing money. IE Roger Ver and the very early Bitcoin investors who had the conviction to HODL.
In contrast, if a pleb who has cash savings of $10,000 uses the same diversification strategy, it would profit only $3,000 for the year, which is also not bad, BUT barely life-changing. It's obviously better to HODL all in Bitcoin and make more than an average of 50% per year, and that's conservative.
Oh gawd.. the more you explain, the worse it gets... even though I do like that you are using something like $10k as a kind of example of how much value that a pleb might have to work with,
but I probably would like it even better if you describe income too.. because a normie/pleb might have $10k at one snap shot in time, and maybe your thinking about it as a snapshot value gets you to try to figure out whether to use all of it to buy bitcoin right now, or what are the various bitcoin price dipping points that you would want to deploy such cash (presuming that it is all available right now)..
so if we are assuming no other investments, and we are presuming that the money is completely available for bitcoin, we still might need to figure out some aspect of what is the anticipated cashflow in the next 6 months? and even that it is important to know what is the annual income? Is it $10k or is it $20k or is it $30k? or some other amount?
At some point, the amount invested may well justify some needs to start to diversify into other investments, even though the greedy lil bastard pleb is focusing on "getting rich quick" right?
Anyhow, is any more money coming in that might be available for bitcoin, or maybe you are presuming that the income stream for this particular pleb/normie is irrelevant because that income stream merely goes towards living expenses and the normie/pleb is just going to otherwise be living his life in the normie/pleb ways because he has already decided that he was ONLY going to be allocating $10k to bitcoin... and yeah a bit vague, but still I can somewhat work with you on it, including our agreement that it is just a matter of starting out with bitcoin, and then figuring out at what point the investment into bitcoin might start to reach a value in which some diversification might start to be justified, and if the $10k invested into bitcoin starts to grow, and maybe does a 3x (which would be $90k per BTC) or maybe a 10x (which would be $300k per BTC), then there might be some point that the person might want to start to diversify, which may or may not mean that selling coins would be the best option, but it might just mean that new cash is used to invest into other things other than bitcoin, since the bitcoin stash seems to be doing sufficiently well, even if maybe overall it is continuing to ongoingly fluctuate in value quite a bit.
Out of context. I was merely making an example for simplicity.