The point is that that isn't what "hedging" means. If all your wealth is in one thing then you take on all of the risk with that thing. Property, fiat money, diamonds, cryptocurrency, whatever. How big a risk you perceive that to be is irrelevant.

The "debates" on HN about crypto always devolve into the pro and anti factions talking past each other which is very dull. A little linguistic confusion makes a nice change.