The point is you don't build wealth by diversification, what's the need of having so many asset and so little invested in all, as a bitcoin investor you should focus on building a good stash in bitcoin first before you think of diversifying, then when you have at least a while year of your living expenses in bitcoin then you can consider diversifying into other asset.
I don't know how you arrived at this statement but I have noticed it to be the case with most of the world's billionaires, they became rich through a single product before some of them diversified. Bill Gate, Jeff Bezos, Elon Musk and many others were all known for a single product which made them rich before they later diversified into others things. So it could be said that starting an investment career or wealth creation process might require one to focus on one asset which in our case is Bitcoin, this way it will be given the attention it deserves. Diversification should only be consider probably when one have riched his portfolio objectives in terms Bitcoin stash.
I agree with you.
When one invest in Bitcoin he Should firstly build a good solid Bitcoin portfolio and focus on it not thinking about diversifying into any shit coin, if diversifying should be considered probably into any other physical asset of which the funds are readily available and not related to Bitcoin funds or holdings.
As you mentioned which I agree as the merits of diversifying and also affirm that wealth can be made through Diversifying with the right assets.
I don't like the idea of diversifying your bitcoin portfolio into shitcoin because I don't think that shitcoin is an assest and it is in the same line with bitcoin. You should understand that bitoin is king and other cryptocurrency depends on bitcoin price movement for them to perform in the market. So if you diversify into shitcoin when bitcoin price dips, all your investment will depreciate in value making it more risky.