Bitcoin is valuable because of its scarcity. The limited number of coins and the fact that it is controlled by software and agreement of the miners, unable to be manipulated by any government is what makes Bitcoin valuable. Trust in this is what drives Bitcoins value and growth.

However, recently there has been a lot of growth in competing crypto currencies, with people looking to invest in a cheaper option with more growth potential, to the point that the price of Bitcoin has been affected. This ammounts to uncontrolled inflation of the total number of crypto currencies undermining the scarcity and undermining the entire premise that gives crypto currencies value. As the number of crypto currencies approaches infinity the value of all currencies approaches zero.

The only moat is acceptance of one currency and not others, but with the establishment of exchanges this is defeated. It would be like using amex or visa or MasterCard, but the number of currencies is not limited by the system like the number of payment systems because the conversion can be completed by the user prior to the transaction. I see no real moat to stopping uncontrolled inflation by an ever increasing  ecosystem of crypto currencies.

There will always be an incentive to create a new currency every few years so that those new to the market can be an early adopter, rather than push up the price of an existing currency and make those who came before richer. Cryptos will become a payment system like paypal and not a store of wealth. Value will be stored in fiat currency and converted at point of transaction.

Therefore the growth in alternate crypto currencies paradoxically dooms all to worthlessness.