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
Frequently, it is better to say what you are talking about rather than using a vague, misleading and even deceptive term such as crypotcurrency if you are talking about bitcoin.
Many times shitcoiners and even people who are engaging in vague, misleading and deceptive discussions are referring to cryptocurrencies and not specifying the extent to which they are talking about bitcoin, some shitcoins and/or both.
You are correct that shitcoins are quite correlated to bitcoin, so it would be erroneous to consider that buying shitcoins provides any kind of meaningful diversification from bitcoin, since an overwhelming majority of shitcoins could not survive without bitcoin. Usually the idea of diversification means to attempt to protect from volatility, so there are attempts to diversify into uncorrelated assets or even assets that are within differing fields, which is not the case between bitcoin and various shitcoins.
Personally, I would suggest to completely stay away from shitcoins, yet surely some people are curious and they cannot help themselves, and they may even be inclined to trade and/or gamble with shitcoins, and even if they consider shitcoins as an investment (which is likely another BIG mistake) then they should limit their exposure to shitcoins to be no more than 10% the size of their exposure to bitcoin.
If you are not trying to mislead or deceive people then it is better to either use the word bitcoin when you are refering to bitcoin or to specify what you mean. Sure there are government agencies and even legislative uses of the term crypto and/or digital assets and or other generic ways that might be referring to bitcoin, yet to me it seems very vague, misleading and/or deceptive for folks to not be using the term bitcoin if they are refering to bitcoin, and to throw out terms like cryptocurrency is a very sloppy way of talking that might even establish a certain level of disingenuineness, that might even amount to acting to try to deceive and mislead others.
In other time, people use the term cryptocurrency because they don't know what the fuck bitcoin is or they are trying to appear smart, which I doubt those to be sufficient reasons to be using such vague, ambiguous, misleading and/or deceptive term like cryptocurrency when they are intending to be talking about bitcoin or at least to point out the extent to which they are or are not including bitcoin in such term use.
Not making different between bitcoin and cryptocurrency has put fear in mind of some persons and has also mislead many to invest in the wrong coin shitcoins has cause pains to many so when people now hear term cryptocurrency maybe you plan to tell them about bitcoin and use the term cryptocurrency they will think is a scam investment because properly they might have had such terrible experience when they invested into cryptocurrency that's why been specific matters alot when given such reference so people should should mind how they use the term cryptocurrency so they won't get others who hasn't gotten such experience mislead so it's important we call bitcoin bitcoin and shitcoins shitcoins instead of cryptocurrency