Many times in this thread we end up talking about diversification to become necessary after your bitcoin holding might become quite large and even several years the size of your annual expenses/income, and so you are correct that there is no reason to diversify within crypto.. since bitcoin is already a leader in the area, which largely means that other crypto (shitcoins) are dependent upon (or correlated to) bitcoin's performance, so there would not be much if any value to diversify into shitcoins.  So, generally the concept of diversification would relate towards other sectors that are supposed to be non-correlated, such as equities, properties, bonds, commodities,  and/or cash/or cash equivalents (again not referring to shitcoins).  One of the problems with poor people getting into various shitcoins likely come from their not having access to other investments, so they might consider shitcoins as their best option, which may or may not excuse such behavior because if they mostly have bitcoin and they build up their wealth to several times their annual income/expenses, then surely at some point they might have enough value to diversify into various kinds of other traditional asset classes to the extent that it might be justifiable to invest in that direction.