We invest into bitcoin or any other investment with an expectation that we are going to be profitable, even though we know that we are not guaranteed to be profitable. We also have to know that the short term is very hard to predict, and even bad things can end up happening in which our investment is no longer strong, whether we made mistakes or whether something related to the asset ends up having problems to weaken it as an investment.
Naturally, no one puts money in an investment planning to not make profit, making profit is the primary reason for investment and while there are no guarantees for profit, there are strategies we put in place to increase our chances of profit, its also prudent to know that short term investments are at a higher risk of not making profit and as such short term investments should be avoiding, if the plan is to make profit in bitcoin, then long term investment is the way to go.
Diversification is good when it comes to the concept of
don't put eggs in the same basket but in this case we must also realize that this concept will not be too suitable if in the end our financial condition is not too good because indeed this concept will only be suitable for us to apply when we have more financial so that when we can invest in bitcoin and in other investments such as gold or property as many people talk about, but this will not be suitable or will not get optimal results when we only have minimal income.
So instead of forcing to diversify, it would be better to focus on just one thing that we are miniaturized so that in the end even though the risk is clearly very present but we are more serious and more optimal in doing it.
I still do this with a focus on bitcoin as I have always done before, not that I don't like the concept of diversification but in the end I realize my current condition does not allow for that so instead of forcing me to divide my meager finances it would be better for me to just focus on bitcoin alone without the need to diversify because it will be far burdensome for me in terms of focus and strategy.
Fair point.
Except I never said anything about diversification, this is a Bitcoin thrend, so I'm trying to keep my comments to bitcoin related investment and nothing outside of it, but if we are to talk about diversification, then I wont try to stop anyone who whats to invest in as much assets as possible as long they have the financial strength to follow through with it, but my comment was solely about bitcoin.