Yeah, a lot of investors often have some sort of misconception of the concepts of diversification, especially when it involves Bitcoin. Those who are actually long term investors and have a strong conviction in the potential of Bitcoin, diversification is primarily considered as an effective way to mitigate risk once a significant Bitcoin stash has been built. The main reason why an individual would consider asset diversification as a strategic approach of growing their asset rather than protecting might be due to the fact that they really do not trust the asset or lacks that confidence in it and this is a typical example of how traders think.

Diversification in the context of Bitcoin can actually more relevant as an approach or strategy to manage certain risks that's associated with the asset when it has already reached a significant level of accumulation or have a sizable portfolio. That way, diversifying to other asset class may potentially lock in the profit they've already made from their accumulation (and not to make further profits) and also potentially reducing the exposure of the asset to market volatility.

And those investors who are still in their accumulation stage, Diversification is never the best option for them as this may potentially serve as a distraction for them rather then actually helping them as supposed, it is best that they focused more on consistent accumulation as this may be considered as a much better and effective approach when it comes to building one's Bitcoin stash. This strategy actually requires a kind of conviction in the long term potentials of the asset as well as the willingness to ride out market volatility.