Diversification of assets is critical to preserving them. Risk is the enemy, yet it is also the bringer of reward. Each person approaches their assets differently depending on their personal situation. If you invest, as your investments grow, it is usually a good idea to invest in a varied tranche of assets, from PM's, like gold, to real property, stocks and bonds, derivatives, to crypto and other vehicles as relevant.

The reason for diversification is that particular risks affect particular vehicles differently. If someone starts mining asteroids and there's suddenly a glut of gold on the market, it's unlikely to as radically deflate the value of your Starbucks stock as it is your holdings of gold. I read the title of this post and noted that folks will conflate BTC and gold due to the mention of them in the same breath, despite that extraordinarily different risks and rewards are potential to these extremely different vehicles.

BTC could hardly be more different than gold as an asset class. For all your BTC to lose all it's value, all you have to do is not be able to access it, and a very wide variety of events, from forgetting your key, to a solar flare EMP'ing the internet, could make that happen, few of which are within the control of investors. Gold has a history as an asset stretching back millenia, and the events which could make your physical holdings valueless are completely different than with BTC, ranging from thugs going door to door and searching homes and seizing it, to the aforementioned asteroid (or other mining) strike.

Gold is considered a highly secure investment class, and has proven to be so since before recorded history, while BTC is ten years old, and most reasonable folks would consider it the highest risk class investment just because of that alone. The price of gold, inversely, is highly unlikely to increase by orders of magnitude, while BTC has done so repeatedly in it's short history, and some folks think it will do so again.

I am glad you noted the difference in risk the assets mentioned present, and unrustled my jimmies.

Thanks!