I wouldn't put myself in a position where there’s a chance of losing everything, that Is why I choose to diversify whatever I can, whenever I can. Just because something is giving you huge profits (in this case, bitcoin) doesn’t mean you’d invest everything in it. I’d rather play it safe and scatter my assets in instruments that have varying degrees of risks associated with them.
You should diversify your assets, and at the same time you should be open to book profit or loss. If an asset has lost its importance, then it will be better to dump it (or at least partially). Remember the dot com bubble? Some of the stocks such as Webvan never recovered, and they were delisted after a few years. We should make sure that the same does not happen with our crypto holdings.
