Personally for me I viewed Diversification as something that doesn’t correlate with the parent asset or is attached to each other. For example now let’s say bitcoin today decides to be in bearish trend for a very long time there is high probability that this won’t directly affect the gold asset or affects real estate investment or even other physical businesses which one might set up. Like wise should this other assets also faces crisis in their own forms you won’t be worried of it affecting the Bitcoin too.

But today if anything happens to bitcoin and the other diversification is actually Altcoins do you see any Altcoins surviving in a bearish bitcoin market? No! because super-head the entire crypto market. Let’s even say at worse bitcoin collapse same will happen to all coins too there is none that will collapse but outside assets like gold or real estate might survive and give one alternative to their loss. Plus you don’t know what Altcoins to invest into