Yep... Another reason that Regardme does not seem to know what he is talking about since he seems to be considering diversification as a way to grow your investment portfolio rather than as a way to attempt to protect it and to preserve its value, which means that you don't need to diversify until you have gotten some level of growth or maybe you have been investing into bitcoin for 4-10 years or longer and even if bitcoin had not grown as you had expected/hoped, you still might need to start to diversify at some point after you had put so much value into one location.
It’s clear and I agree with you about what should be the primary aim of an investor who wants to diversify into other sectors, the primary aim should be directed towards risk reduction and not just a way to grow investments portfolio. And anyone who is diversifying should try to spread his investments across a different sector and not engaging in what’s similar to the investment currently ongoing . By so doing, you’re trying to mitigate or reduce the impact of risk or downturn in any of the category or sector and at the same point enabling a more stable returns over time.
Further more, a newbie into bitcoin investment shouldn’t think of diversifying yet, he or she doesn’t have any business in diversification as the focus should be to consistently accumulate bitcoin and grow his portfolio to a point of over accumulation, perhaps 2-3 cycles of being a Mainstay in bitcoin accumulation.
I am not proclaiming to know at what point diversification starts to make sense, since there are some subjective elements involved in making those kinds of decisions, yet at the same time, I had been suggesting that beginners do not likely need to be thinking about diversification, and they likely could spend several years building their cashflow management and solely focusing on building up their bitcoin investment before diversification might start to make sense.
I think that Regardme had been talking about diversification as if it were a way to invest into a bunch of things simulataneously (such as shitcoins) since he is assuming not to know which one is better or worse.
Yet any of us who have already identified bitcoin as amongst the best, if not the best investment, then why is there a need to diversify. Another thing is that even if we might be a bit hesitant about bitcoin, then we likely need to figure out how to diversify rather than merely diversifying for the sake of it. Some people are still trying to figure out bitcoin's investment thesis and how bitcoin is different from various shitcoins.. so yes. .that is too bad that they are lost in that regard.. yet still it may well be prudent to at least get started with bitcoin first, and then just figure out their position size until they learn more about bitcoin. If they are studying various shticoins while they are studying bitcoin, then they are likely distracted.. and it might be difficult to help them to figure out why bitcoin first and to actually act upon bitcoin first ideas.
You’re absolutely right, sometimes when I hear about diversification here I usually do ask myself why are my diversifying when I’m still in my bitcoin accumulation stages, the question I usually do ask myself now where are my going to diversify that will be better than investing and accumulating Bitcoin which I think it’s quite a bad idea to me right now, And it’s never like if we find ourselves in a situation of maybe you could say that we’ve achieved our goals of whatever over accumulation that we feel that we’ve achieved then some guys here would definitely start thinking about how they could diversify some of there assets, which I still think it doesn’t guarantee success in a long term investment in other ideas of diversification.
To me I don’t think there is any reason to diversify to anything except to continue buying and accumulating my bitcoin and stacking more and more, I don’t think there is any reason for me to be hesitant in terms of accumulating more instead I will be looking for a possible way of being aggressive, whoever that want to diversify and then thinks that giving shitcoins a try is totally a bad idea to me because even shitcoins depends on Bitcoin to thrive so why do I have to diversify on something that depends on what I have been investing, instead I will
Prefer to get started and continue buying and accumulate bitcoin consistently, which I also think that it will make me look like I don’t have enough trust in Bitcoin to be thinking about diversifying when I’m still in my bitcoin accumulation stages and all this talk of diversification would definitely get me distracted along the line, then I will prefer to focus on stacking up Bitcoin consistently and hodl.