I would not lie to myself, but I really want to depend solely on bitcoin due to its high profitability. But knowing how volatile it is, it made me quite scared and just accept the fact that what we had today might definitely change in the future. So it’s best to just invest into other assets as well like real estate and gold, but always put bitcoin as your major investment and should have the highest allocation of your fiat.

Relying solely on Bitcoin is a very wrong decision to make, no matter how wealthy you may be , those persons that are just starting their lives with Bitcoin are diversifying their  income from Bitcoin to another business.

Your friend needs to be very careful, this life is slow and steady wins the race, him involving in trading or gambling is not the best option to do because these are most risky aspect of Bitcoin, closing all his businesses and putting all his other achievement into Bitcoin is not the best, you should keep talking to him maybe gradually he will understand when he starts losing.

Bitcoin is not a get rich venture in as much as the risk is there, it takes time to grow in wealth, it is a steady and continuous process that grow with time. Tell him to go back to his art work, since he was doing fine before he was introduced into Bitcoin.

This is where people gets it all wrong and after a huge loss in the gambling or trading aspect of Bitcoin, they say Bitcoin is not genuine, but they are the ones that have failed to understand how Bitcoin works.

Having a steady source of income throughout life makes it easier for someone to target long-term investments because they don't have to worry about how to generate short-term income from investments to cover living expenses. Many people mistakenly believe they can rely entirely on investments and don't need to work to earn money in other sectors. They forget that Bitcoin market fluctuations can significantly impact investment decisions if they don't have other sources of income.

This is different for people who have achieved significant asset growth, as they can strategize about investing across multiple assets and sectors other. For people who are just starting to invest with limited capital, it will be very influential if they do not have another source of income to meet their living needs.

Bitcoin is the only asset of its kind that has the potential to go from zero to six-figures, and investing maximum resources in it can lead to maximum growth of our assets. The returns that BTC has given in the past have made traditional markets look like dwarfs, the average returns annually are about 55% or even more, and the Sharpe ratios of BTC even outperform the S&P 500.  Definitely, it's a very volatile asset and drawdowns of 30% or even more happen every few months, but these ups and downs are the cost of its exponential growth. If you believe in the future of Bitcoin and its unmatchable potential, then investing your maximum resources is not a rash decision, but it’s your bold conviction in it.

Well just to put it out there, Bitcoin gives multiple streams of making money off it..its not a one size fits all, some people trade it on chart and they make money off it, others use it for peer 2 peer trading which I have seen a friend do and make some decent profit because you make money from both buying and selling BTC, and other possibilities..otherwise the only risk I see is if one has tried something to make profits and they still experimenting with it and choose to quit their usual hustle or day job, then that will be a bad choice...

Not you arent wrong, your buddy needs to spread their risk buy diversification of their portfolio,  investment 101.

There is no wrong if you depend solely in bitcoin as long as you have already established a strong foundation for it. Which means you have secured your finances, you have increase your flow of income, and most of all, you have owned multiple investments through bitcoin. For me, I would never wanted else rather than to keep growing it and maximize my bitcoin investment.

How can he depend on bitcoin only?

Do you mean that he bought so much and so early that now with Bitcoin's price going up he became rich?

Well, if that's the case, that's not right. If he has a successful business he should try to maintain it. Maybe hire an apprentice to keep some paintings going in his stile and keep attending some galas. Owning bitcoin is not an income source. In the end of the day, if he owns that much BTC he could also buy some property or something else to keep earning some income without that much labour.

Diversifying the investments is a smart strategy, but holding just 1-2% of assets feels too small and timid for people who believe in the future of Bitcoin. Institutions and experts like ARK Invest and Ric Edelman are now suggesting people to dedicate about 10-40% of their allocations, which may vary with risk tolerance, because they think that not investing in BTC can be a speculative mistake in today's world. Also, institution like Grayscale and Ned Davis indicates that having at least 5% of Bitcoin in the portfolio improves its performance in risk-adjusted returns. However, you could think investing 100% money in Bitcoin is extremely risky, but it is more suitable for us who have a stone-cold conviction. For people who believe in the future of BTC, at least 10-19% of allocation is a balanced approach that would also manage the volatility.

It also depends on the person's age. If this is an elderly person, I doubt that he or she will be able to organize a business, so the option of living for one's own pleasure is not bad at all. It is clear that when there is money, it is a resource that one wants to develop even more, but in reality, desire alone is not enough, one also needs to be able to organize the process. When a person has never done business, it is difficult for him or her to even come up with a system for how everything should be.

It will not be possible to survive solely on Bitcoin. You must rely on paper money as well as Bitcoin. You could become dependent on Bitcoin if you were accepted by all countries in the world. It might be possible to become dependent if you could exchange all goods with Bitcoin. Many people have started to depend on Bitcoin because the profit margin of Bitcoin is higher than that of other currencies, but if you want to live a normal life, then of course, in addition to being dependent on Bitcoin, you must also be dependent on fiat currency.