We all know that there is a hard limit to the number of bitcoins that could ever be minted. That limit is almost 21 million BTC (minus a few Satoshis). Long term holders hope that this limit will cause the values of their coins to go up considerably due to increasing demand.
However, there is no limit to the number of shit coins that can be invented. In fact the ETH shit coin now has a market cap that is of the same order of magnitude as BTC. Furthermore it is an inflationary coin.
If many people move their capital to these alts won't this negate the benefits of the 21 million BTC limit for Bitcoin holders?
No, i don't think so since the people have already invested into bitcoin. That is kinda like comparing 2 different currencies. Don't quote me here but I am pretty sure there are 21 million bitcoin available and 4-5 million available to be mined. Bitcoin also has the most merchant acceptance and uses compared with other alt coins, so it is pretty impossible that people will just start pouring over to other alt coins instead of bitcoin. Right now, all the other alt coins are no challenge to bitcoin, and the biggest competitor, ETH, doesn't have as many advantages as bitcoin, such as decentralisation.