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.
Alot of people fail to realize that bitcoin is also a cryptocurrency, they seem to think it's different from cryptocurrency, bitcoin is basically the first cryptocurrency and every other altcoin that csme after were attempts to make a different version of it, some were even made to surpass bitcoin but they obviously failed in that endeavour as bitcon is still the biggest cryptocurrency out there, what has really set bitcoin aside from other cryptocurrency is it decentralised nature with no bank or government having any influence over it making it also the most secure cryptocurrency so anyone investing in bitcoin is also investing in cryptocurrency, to diversify would be to invest in other altcoins as well while already investing in bitcoin
I disagree with those who say that investing in other coins after investing in Bitcoin should be considered diversification. Diversification does not mean just dividing money in multiple places, but rather spreading investments in different and unrelated asset classes from each other, so as to reduce risk. For example, holding Bitcoin, while also investing in land or real estate or selling products or investing in your own business, etc.investing in different businesses means diversification.
Investing in Bitcoin does not mean investing in crypto. Because most of the altcoins or shitcoins on the market are scams, fake projects, or extremely volatile, but Bitcoin is different. Bitcoin is the first, safest, and truly decentralized digital asset. If it is called "crypto" along with other coins, newcomers will think that all coins are equally safe, which is not true at all. Bitcoin, which is known as the most reserve and investment asset in the world compared to any other coin so far, should never be compared to Altcoin or sheet coin. Rather, we currently call Bitcoin as digital gold and it has retained that value, so comparing Bitcoin with any other coin would not be right at all.