You folks shouldn't make it look like investing in bitcoin and investing in crypto isn't diversification because both assets can be converted into cash, but it is just advisable that we diversify into another asset class, such as real estate or selling of commodities, so that we can reduce volatility in our investments, and at some point we can depend on the money we will generate from real estate or selling of commodities to solve our expenses, and it will allow us to hold our bitcoin investment for a very long time because we will not be in a hurry to sell our bitcoin investments since we have multiple streams of income.
My friend investing in crypto and investing in bitcoin isn’t diversification. The fact that you think they’re different is wrong, bitcoin is a type of crypto and when you say crypto I guess you’re saying altcoins and shitcoins. They’re all in the same class just that bitcoin is more stable and is a store of value, it’s the first, and biggest of all cryptos.
So investing in bitcoin and investing in Ethereum or Solana is seen as one kind of investment which is crypto.
Diversification comes in when you invest in a different asset class or industries. A totally different kind of investment from the previous one is what is considered a diversification cause the major aim is to reduce risk and increase your potential returns.