Re: People will choose bitcoins more if the number of cryptocurrency option is less.
Do you agree that more people will choose to invest in bitcoins if there were not so many cryptocurrency choices although not all are good?
Obviously!
If you have only two types of ice cream in the shop customers will for sure buy more of those brands than if you would have 100 different types.
The moment there are multiple coins in which to invest even if the majority would keep most of their investment tied to bitcoin they will still spend a few $ here and there on altcoins, so cutting down that supply would for sure drive more money into BTC
And there s another thing, some choose to invest in other tokens because they know that if they are lucky they will hit the jackpot, there is no way for BTC to get the same return as some of these tokens, for example, Shiba Inu went 46,000,000% in 2021, so some are thinking of selecting 100 coins, putting 1$ in one and if just one does the same they will earn far more than they could earn from BTC. At the same time, they could earn -100
, but that's another story. If those opportunities would not be there the 100$ would go to BTC or at least a part of it.Though I wouldn't be surprised that those who create and sell shit coins use the money to funnel it into Bitcoin at least partially. All these shit coins that are created as BEP-20 and other token standards get deprived of their liquidity and then flow into other cryptos I would suppose.
It is still ending up in a net negative in terms of total investment as some of those who burn their fingers on shit coins might shy away from crypto altogether at least temporarily.