jcz1 wrote:While I can see your point about bitcoin's value being linked to some alt-coins, and those alt-coins are technically blockchain applications, my point is the generic blockchain application has nothing to do with bitcoin or its value. So to link "limitless applications" of blockchain to the value of bitcoin itself is misleading. Any such link is with a specific set of applications (only alt-coins as far as I can tell), and even that link, as you suggest, may be temporary.
You have made a decent argument here. Limitless applications of blockchain technology does not have a direct causal effect on the overall value proposition of bitcoin (in theory). But I will argue that it does have a network and market effect. Is it possible that all these other industry blockchain applications actually hurt the adoption of bitcoin? I guess it is possible, but I don't see it as likely or even practical. If bitcoin wasn't being actively developed, maybe? Let's look at the reality of the numbers. In the past 2 years, bitcoin dominance has fallen from 82% of the crypto market, to 36% today. This is directly tied to other crypto projects of varying value popping up all over and eating up a large percentage of the overall crypto market capitalization. Has this hurt bitcoin's value in the last 2 years? Obviously not, the price movements speak for themselves.
Your argument sounds good in a theoretical world inside a controlled box. But one needs to realize that the bitcoin protocol is where so much of the innovation is truly happening. From HD wallets, to APIs, resource libraries, segregated witness, lightning networks, etc. The open source community of people developing and using bitcoin is immense. Additionally, bitcoin is the most secure crypto (currently), and the most battle-tested against malicious attacks. When new technologies are brought out, people often copy the most successful thing and attempt to differentiate in some specific way to add additional value. Now we have over a handful of different consensus mechanisms other than simply Proof of Work (PoW) like bitcoin https://www.coindesk.com/short-guide-blockchain-consensus-protocols/ but that isn't having a negative effect on the overall bitcoin adoption. When someone learns about a new disruptive technology in the medical field (as an example), many will ask how this came about - and the answer inevitably leads back to bitcoin and a continued/increased awareness. Which grows the overall network, which adds value. Therefore I don't consider my statement misleading because in the real world (not in the theoretical world) the data show us that adding additional blockchain applications does increase overall bitcoin adoption and value.