A short YouTube clip (Ben Simpson) arguing that diversifying across many altcoins is counterproductive because most altcoins are correlated with Bitcoin. He advocates concentrating capital into a few high-conviction assets, criticizing influencers who spread capital across many small positions and emphasizing simplicity for better returns.
Buying more altcoins and diversifying in your portfolio is a fallacy. If you add more and more altcoins, not only does it add complexity, it actually doesn't allow you to take profits easier because you've got too many coins. And so many people forget that diversifying actually doesn't matter because it all is correlated to bitcoin. So the only reason you'd have a lot of altcoins is if you have high amount of conviction in a lot of different altcoins. But having more coins does not equal higher returns. I've always found the simpler my portfolio, the less coins I've had, the better the returns. Influencers like like to put out. They have 20, 30 different altcoins. But if you have 20, 30 different altcoins, how much capital do you have in each of those coins? If bitcoin's going down, guess what? It's all going down. Stop thinking about diversification and think about holding good assets with a high amount of capital, with conviction. And that is what's going to allow you to outperform the market.
