I'm still a beginner in crypto, as we know from time to time the number of altcoins is increasing, but I want to ask,
will the increasing number of altcoins affect the price of bitcoin,?
but in my opinion it will not affect the price of bitcoin, even though the number of altcoins is increasing.
In my opinion it will definitely have negative impact on the growth of bitcoin in long run because you just need to assume that if all the money right now we are having in entire altcoin market would have been invested into bitcoin alone then where would be bitcoin trading right now? That's really unimaginable. But, unfortunately we have our own enemies who will eat the money intended for bitcoin investments.
At the same time I appreciate the existence of alternate cryptocurrencies, because we need them for at least for diversification purposes which means people will invest some money into them and will spread their risks across different assets.
The money that is intended for Bitcoin, goes to Bitcoin and not to any altcoin no matter how old or trustworthy they are. You said it yourself, that altcoins are a good way to diversify one's investment since no one wants to put all their eggs in one basket. So if there were no altcoins, people would choose something else to invest that money in like gold or real estate or silver. So basically, the money that isn't meant to be for Bitcoin is invested elsewhere and that elsewhere are altcoins.
Altcoins are a big reason why cryptocurrency industry is so widely known in the globe today. Bitcoin alone would take longer to spread the word to the people around every corner of the world if there were no altcoins and other sectors such as NFTs, blockchain-games etc. which are products of altcoins.