Its foolish to put all of your savings into one medium of exchange anyway.
I would tend to agree but what I've found interesting of late is that most of us don't have to 'put' our money in one medium. By default we have our money in one currency. Falkvinge (if he did what he said he was doing), assuming he was starting from that position, was still diversifying by having most of his money into Bitcoin and living expenses in Krona. Yet to put that much in Bitcoin at this stage of the game when those who know the technology best are still insisting on calling it 'experimental' is a mighty high risk strategy so maybe rather than 'capitulating' he just saw enough sense to redress the balance and reduce a good proportion of his Bitcoin exposure.
As much as many of us may like to be scathing of the economics that underlie centrally issued currencies, for the time being large-scale exposure to the pound/dollar/euro etc. is I would say still significantly less risky than to Bitcoin.
Yes, this is very true in that we often have to go out of our way to diversify. Bitcoin has it's place in that diversification, however, his "all-in" mentality came off as he was looking for a get rich scheme, and when that didn't pan out, he capitulated.
Generally I have roughly 10% of my
investment funds, not savings, allocated to high-risk or speculative investments. Taleb recommends this in his Black Swan book although I tweak it some to fit my personal preferences.
