But the real question is why are you taking the profit:
Some are taking profit to actually invest into other assets which is what we call diversification or to build their businesses which is a great idea as profits from this business can still be used to invest into bitcoin yet again. But are you familiar with this investment or business, if not why take profit.
Some can take out profit to either help to Carter for their needs like building or buy themselves houses if what they have now is a rented property or to renovate the property if it is theirs, certainly there is nothing wrong with this.
If a person has invested in Bitcoin for Long and has a sizable portfolio but don't have other sources of income, such person can withdraw his profit and diversify into other business that will bring forth more money to still reinvest in Bitcoin or to be useds for other expenses. For the aspect of using Bitcoin profit to Carter for needs, Bitcoin should be an investment for future purpose and not for catering of needs except there is no other way to siuce out income.
Why you shouldn’t take profit is:
1. Using the money to actually spend it on unnecessary luxuries (emphasis on unnecessary, as there is nothing bad to get some luxury for your self).
2. It is wrong to take profit and abandon it on fiat currency, that’s going from an asset with a store of value to one with devaluing characteristics.
3. Taking profit to actually invest into altcoins because there is predicted alt season coming with some Altcoins been rumored to be able to do 5x or more is a capital gambling which mostly results more into losses than profits.
4. lastly Buying Altcoins are not diversification means so do not take profit from bitcoin to buy Altcoins.
All the points you made here are a valid one, should be taken into consideration. I know it will sound funny to many but that is just exactly what people are doing. Especially the number 2 and 3, both has summarized 1-4. It's quite funny how people remove money from Bitcoin tyo invest in altcoin hoping to become rich from it. I just guess this are newbie or ignoramus.