> As one of the btc nouveaux rich, help me understand something I see reoccurring among my other btc-rich friends. Generally, when you're up big (and in some cases extremely wealthy), you diversify your investments in order to preserver your wealth. However, almost without exception my btc friends are such believers that they are holding on for the ride forever.
That's the idea.
However, you have to understand that if say SNAP stocks made someone rich, then diversifying makes sense, but if you got rich by some investment in some company Cayman Islands (but with a real business model), then you wouldn't just bring back the money or part of it purely for the sake of diversification.
In other words, diversification away from bitcoin isn't in the same boat as diversifying away from real estate or some stock.
From your friend's perspective, if they sell $100K worth of bitcoin, then is it possible that they might end getting on the radar of the govt and could be on hook for more than $100K?
In addition to that, bitcoiners also believe that bitcoin hasn't reached it's peak, so when it reaches it's peak, they wouldn't have to sell their bitcoins (because every business would accept bitcoin). You don't even have to go to 'every business' part. Even if half of the businesses accept bitcoin, then they don't need to sell their bitcoins.
Finally, if your nouveaux rich friends expect a Venezuala style situation, then, holding it further is the rational choice from their perspective.