Do not put all your eggs in one basket is the most consistent business advice you'll receive irrespective of the location. The risks associated with going all in on one investment is too much and sometimes simply doesn't quite justify it.
It isn't like a diversified portfolio means automatic wealth. All assets can still crumble in such a scenario (although one would have to be really unlucky). A diversified portfolio is more to prevent the chances of loss than it is to increase the chances of success.
Making huge gains will forever rest in a sufficient amount of risk exposure. I have seen this play out time and again from a personal perspective and can understand why an industry such as gambling for instance continues to thrive.
The Diversification Dilemma
The crypto space of course is the fulcrum of invest for me today. Many people see crypto as the next big thing in terms of technology and one of the fastest ways to financial freedom these days due to its novel nature, volatility and long term potential in terms of usage.
If we all had sufficient resources, many of us will likely spread them over a vast array of crypto assets to minimize the risks of loss. However, the scarce nature of resources means that the average person is limited to just a few assets to choose from and invest.
Many people opt for just one or two. Many are heavily invested in Bitcoin for instance, taking advantage of its dominant nature and security guarantees to keep faith in their decision. Going all in on one asset is very risky, so there is need for some form of security no matter how fickle.
For those of us who are heavily invested in other alts, we often look similar things before making a decision. We have all seen what has happened to Terra Luna, and such a fall will only spook investors further into being a lot more cautious in the space. However, when choosing a project to invest in I have always talked about looking out for its value proposition, and letting that be the main driver of our decision.
Because Hive offers so much more than just looking at prices go up and down all day, it is a lot easier to trust and hold long term. There are a couple of people whose main crypto asset is Hive, and so far there is been no regrets. We have all seen Hive fall from ATHs of $3 to 50 cents and remain unbothered, such is the trust when we invest in an asset with a strong value proposition.