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Quote from: Moreno233 on June 09, 2025, 05:40:09 PM

Quote from: Proty on June 08, 2025, 11:22:59 PM

It is obvious you fails to understand the reason for diversification. Diversification is not a means of acquiring or making more money but rather the purpose of diversification is to reduce risk by investing in different assets. I don't really see anything wrong with the idea of investing in bitcoin alone more especially if one don't have the financial muscle to diversify or spread his assets across different investment in other to reduce risk

This idea of diversification have ruined many people because they never knew what diversification really is and how to apply it. You can't buy Bitcoin and shitcoins and call that diversification, instead, that is a financial mistake. Diversification should be Bitcoin with other areas of investment probably physical investment of an entire different area like stocks. This will work somehow even though I still believe that an all in on Bitcoin still remain the best since I have not seen any investment asset that have done more than Bitcoin in the last two decades.

Instead of discussing diversification, we should be talking about consolidating our investment in BItcoin especially now that there is a minor correction in the market which represent an opportunity for a good buying position. This will do us more good than discussing diversification that can make people think that spreading their money to shitcoin is a good practice under diversification

The diversification topic is not necessarily easy, and surely there are some folks who come to bitcoin and they already have investments in various assets, so they might have had already been practicing some level of diversification, and maybe they did not get to a point of being diversified right from the beginning, but instead slowly build up the number and the kinds of investments that they have.

Even if a person is brand new to investment, and they are considering getting into bitcoin, they may have already started out by saving cash, and they might have even come to realize that their cash is tending to lose value, yet they are still empowered by holding some level of cash, even if it is not holding value very well, yet if they start to hold more than a couple months of cash, then they might continue to add to the cash, but the cash does not really grow in terms of their expenses, because their expenses are also growing just through the changes in prices, and that saving phenomena gets even worse for guys who might have close to 6 months or more saved in cash. The more cash they have the more that cash is debased and does not necessarily purchase as much as it did previously.

I had a friend who had been saving up for a house, and her income was around $50k per year, and maybe her expenses were in the $35k territory, and so after 20 years of saving, she had gotten to around $200k in cash saved up.. and so it seems to me that in the past 20 years, she has never been getting ahead because the houses were tending to go up in costs faster than she was stacking her cash, and her cash was not working for her.

A brand new investor can start out with just cash and bitcoin, but they should not be considering going ONLY into bitcoin without considering that they have a buffer of cash, and so the cash and the back up funds serves as a form of diversification, and so if the cash and the bitcoin are building up, and the cash is getting into the 4-6 month arena or even greater, then these folks might start to want to think that they might not want so much value in cash that is not working for them. Maybe they want to put more into bitcoin, yet they might already be happy with the level of their aggressiveness in regards to their bitcoin, and perhaps after 4-6 years investing into bitcoin, they might have had gotten their investment into bitcoin to be close to a whole year of their expenses (or perhaps their income, which is a higher level), so they might already consider that they are already making significant contributions to their bitcoin, including what they had already invested into bitcoin and also including how much bitcoin might have had been going up in price during that time too.

So the answers to the questions regarding when to diversify or whether to diversify are not always clear (and not the same for everyone) yet after one or two cycles investing into bitcoin, guys might start to get some sense that that they would not mind having some investments that are other than bitcoin and cash... and sure it not mandatory to get other investments, but it also is not illogical to do so, either. We might dispute over at what point diversification makes sense, and some guys might reasonably think so only after their investment into bitcoin is 6 months of their expenses, and other guys might wait until their investment into bitcoin is equal to 3 years or more of their expenses.. and even though I consider that if the 200-WMA value of your bitcoin is equal to 10 years of your expenses, then you are getting close to the threshold level of fuck you status (or even starting to get to overaccumulatoin status), even though guys may want to get to a higher level to make sure that they have a cushion in case they make mistakes about their determination of the value of their bitcoin in terms of starting to be able to sustainably withdraw from their stash.

Firstly I disagree with Proty, who suggests that diversification is not for profit, so I ask why else should somebody go out of their investment comfort zone to diversify into another investment or business if not to increase profit. The basic aim of every investment is to make money, the risks that you are reducing in diversification is incase one of the assets stops being profitable you can rely on your other asset to remain profitable but there is nothing wrong in being profitable in all your investments

Bitcoin has somewhat changed the narrative of diversification for those that truly believes in it's potentials as a store of value that will keep increasing and reaching ATH in the future. If you are holding bitcoin for the long term there is no need to worry about diversification, it has proven beyond reasonable doubts that it will be reaching ATH in bull circles. But for weak hands that have doubts about the future potentials of Bitcoin they can diversify into other assets that they please.

Bitcoin limited supply has abolished the popular saving culture because it is a hedge against inflation and anybody that is still saving their money for the long term in traditional banks is not well informed about Bitcoin. Fiat are centralized and governments can decide to mint more money into the economy and the implication is inflation and devaluation of their currency. Bitcoin investment serves a dual purpose for it's hokder, you keep your stash in Bitcoin and it gives you sure returns on investment on every bull circles.

You are entitled to your opinion and you can disagree, but diversification like its has always been emphasized here is not for making money but instead to protect our Bitcoin investment, unless for someone who have a mindset of trading and making money from it that thinks in a manner that you diversify just to make profit, instead of having the awareness that you diversify to be able to sustain your investment asset, so diversification isn’t really necessary to grow the investment instead to protect your investment portfolio.

There are some fellow who must have been in bitcoin for a very long time and they have not thought of the word diversification because it’s not quite easy to control and sustain that in a different way, people that are new investors that haven’t accumulate enough bitcoin might not necessarily be in a position to be diversifying in a short period of time, and also some people try saving cash which we know at some point that this fiat tends to reduce in values as you continue holding to it and it can also serve as another means of backing up our funds which can justify another means of diversifying