Financial Education - A Closer Look At Diversification

^{If the world revolves around you, so should your investments}

There's a rather big struggle in society with converting told figures into sustainability, and this is the ability to throw money into the right field of investment. The first thing that drives the thoughts of investing is needing more money, but along the line, you figure it's a destructive force because it doesn't allow one to stick around, rather, just gets him tossing dolls on literally everything.

Now if you're one that throws money on everything, you're not taking risks, you're living in it, so basically, your entire financial protection is on the edge. People do just as much to find the right arguments, or should I say the right things to justify these actions, but truth be told, the most spread gambler in the room loses way more than anyone else, he could luckily earn more at some point, but going up, the losses dominate the profits. A field focus gambler plays with faith and steady aiming, the focus isn't lost, so the goals remain achievable as long as he tries, long term is considered, that's where the win lies…

Here's one definition of Diversification you didn't know of

^{Diversification is pulling money from gold, and placing them on shits}

The study which influenced this definition was "Crypto Investments" A certain Hiver wrote this, I'm not willing to tag him/her, but let's understand the perspective…

While someone poured millions of dollars into Shiba, some other may have poured it on Hive, the very first person is a successful real estate investor, and the second person is a decentralized media enthusiast. Now, the real estate investor is very successful in his field, now let's assume the Decentralized media enthusiast is also successful in his field, what makes this two different in this case of investment is that, the real estate millionaire has invested in Shiba as a means of diversifying his portfolio, but doing it the wrong way, he has invested on hype thrown by the media. Whereas, the decentralized media enthusiast is merely stressing because he's just up in his interest field, building a stake on a network of his circle. Judging by the market trends, Hive turns out to be doing better, so one of them is probably not regretting, while the other is.

Now, this never happened that I know of, but as the illustration is to be better expanded, diversification outside your circle is called doing too much

No one should be investing on a network of which he doesn't understand the solutions it brings, and how sustainable its options really are. If you look at most company owners, their nature of developments and investments tends to go in one direction, so then, it supports the motion of diversifying in your reach. Look at Mark Zuckerberg for example, while he owns Facebook, one of the biggest social media platforms, he acquired Instagram and What'sApp along the line. Those two become his diversified investments, but what exactly do you get from his approach?

He's still chasing the "media business" shit. His plans are still connected to controlling a network of the masses. His recent interest in digital currencies and the Metaverse is no different, considering that the world is advancing, the ability to build on a network with huge participants, socializing and transacting, whether information or value, it all falls back to his business of running the "peoples network"

Diversification doesn't necessarily mean stepping far apart the field of your best knowledge, but it is about exploring more options within your circle. A circle definitely has so much based on its circumference, so one can always have more to look into for a diversified portfolio. Is your field gaming? Stick to it and explore the options all spread… Is your field Defi? There's a lot of protocols with it at the center of the heart, or many you're just interested in NFTs and Art, damn it, there are many marketplaces to run around. Don't blindly move from one investment to another, it never works out well, stick to your business, don't go serving food when yesterday you were selling shoes, unless you're still tryna find your passion or something…

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