A friend of mine just got into Bitcoin, lucky for him, his successful. Before he started Bitcoin, he was actually into a good business of selling artwork which wasn't so bad. So he got introduced to Bitcoin and had a quick success. It's actually a good and exciting thing to see someone progress fast like that, but he quit selling artworks and other little businesses that kept him going he stopped, he now depends fully on Bitcoin. Bitcoin is the king no doubt, but From my Point of view I think that depending fully on it might be risky to you financially. I don't recommend anyone to depend solely on Bitcoin or any single asset. Bitcoin can fluctuate rapidly and market volatility might impact your financial stability. It is actually very risky to invest in a single asset. The part that scares me the most is that my friend has put all his resources into this one asset. If am wrong please correct me. Thanks
Here are the implications:
Relying solely on your bitcoin investment can put you in a position where you either end up in losses or with very little or no profits at all. Such a decision will not be favourable during the bearish season where you are supposed to be accumulating bitcoins instead of selling off your bitcoins at unfavourable prices just to make ends meet.
The emotional stress of investing what you cannot afford to lose is another big issue. With the impacts of volatility, seeing your investment fluctuate can be mentally exhausting. It is never adviceable to put all your eggs in one basket.