But, yeah, you are free to invest (or diversify) into inferior assets merely because you are having difficulties figuring out how bitcoin differentiates itself from them.
Wasn't it Warren Buffet who said that diversification for the sake of it likely demonstrates that the person has not done enough homework.
Good luck. You are likely going to need it.
I don't argue that bitcoin is a top asset and the portfolio should contain the overwhelming majority of it. as I understood Warren Buffet was talking about broadly diversified portfolio and he preferred portfolio with high-quality assets but not the only one kind.
for example, investor could allocate 90% of portfolio to bitcoin and the rest 10% for ETH, SOL, LTC. percentage of bitcoin could depend on appetite for risk. I agree that allocation to dozens or hundreds of tokens looks stupid, but 90% or more for bitcoin shows respect and confidence in this asset and adding 2-3 other top assets to portfolio won't hurt.