First: I hope you are not advising diversification for newbies or even folks who might ONLY have a few investments at the time of getting into bitcoin.
Second, your suggestion that holdings leads to maximum profit seems problematic, since the framing of a long term investment in terms of maximizing profits sounds like a trader who is ONLY investing because of the "profit" angle. With investing there seems to be a bit of a different mindset, and surely it seems that one can keep building up his bitcoin investment and/or any other investment, until he considers that he has enough of that asset or more than enough of the asset. Beginner investors might not know how to valuate their bitcoin holdings in order to know when they have enough or more than enough, yet I would think that after building a person's investment for a cycle or two, the size of the bitcoin holdings will start to inform a bitcoin holder (stacker) regarding the extent to which continued accumulation is preferable or if maybe some tweaks in the methods might be preferred.
Of course, based on your own time on the forum, you may well have had been accumulating bitcoin for more than a cycle and maybe even two cycles, so I would imaging that you are influenced by the size of your stash more than the extent to which it is "in profits" or not, but sure, it could be that even after 8 years registered on the forum you have not figured out that the "profits" angle is not really a good motivating framework even though many of us do like to talk about our profit levels, even if those profit levels might not be truly motivating us in your BTC management.
You’re absolutely correct. Inasmuch as it’s not advisable to put one’s eggs in one basket, It can still turn out to be a trap for newbie investors to consider diversification as it might not be the best option for someone who’s just starting out. Instead, it’ll be more profitable to focus more on Bitcoin a this will give the investor the chance to gain deeper knowledge and understanding of the asset as well as its potential, because this is the only way to really harness and benefit from those potentials.
I also stand with you in your thoughts about profit maximization in Bitcoin. The main purpose of accumulating Bitcoin (for the long term) is to build wealth overtime, and not really about chasing quick profits. It’s about setting financial goals and finding a balance that works pretty well for you and those goals.
As one continues to accumulate Bitcoin over the cycles, the size of their portfolio can indeed inform their decisions. They might begin to consider adjusting their current accumulation strategy or possibly make a quick change in their accumulation pace, either to make their accumulation more or less aggressive. It’s a lot more understandable when newbie investors are still dwelling on the profit maximization mindset when investing in Bitcoin, but as one advances and becomes more experienced and equipped, it’s important to make a shift in focus from the profit maximization approach to wealth preservation and management approach.
This is why it’s important for new investors to set clear goals and also engage in doing all it takes to really understand market volatility because that’s the best way to learn how to effectively navigate the market as well as to benefit from its potentials. Patience is also key as well as continuous growth in learning because Bitcoin investment is more of a long term game than get rich quick scheme.