The problem is that in the future there will be no intrinsic reason for Bitcoin to be the unit of currency used to conduct financial transactions using distributed blockchains. Alternative cryptocurrencies like Litecoin and Peercoin offer the same advantages over traditional means of transferring funds electronically. The fact that these currencies trade like pennies compared to Bitcoin indicates that the current BTC price has more to do with the perception that BTC is a store of value than it does with its actual technological merits. This value disparity can only be justified if BTC is essentially preordained to remain the world's dominant cryptocurrency.
This is a specious argument. There are other cryptocurrencies that COULD offer the same functionality, but without bitcoin's marketing, brand name, momentum, and established infrastructure in its miners and its holders. So then they don't really offer the same advantage after all. A currency 's value is not solely determined by its technology and features.
Very well said.... when bitcoin already has the brand name, literally hundreds of millions are being invested into startups and building out infrastructure and adoption. It's doesn't seem all that likely bitcoin would suddenly dissappear and everyone takes all that time and effort spent growing out bitcoin only to do it a second time around for something that isn't that much different.
On the flipside of things one could argue that if a large company like say a Google was to step in and create their own world cryptocurrency it could still have the potential of over shadowing bitcoin if it was done soon enough that bitcoin is still so small. Based on the same reasons you mentioned, the brand name and in the case of google actually having the finincally and technical and business support to actually make adoption happen much quicker than the more grass roots bitcoin community. Of course something like tht would probably have to happen sooner than later. Once bitcoin adoption grows to a certain level it would be very hard to switch to something else.