@mich
I think the network effect argument is a very solid one especially in the short term for Bitcoin. When it comes to people who have not spent the time to have a general understanding of cryptocurrencies, Bitcoin is the basically the ambassador to this space. (Some argue Doge as well. I can kind of see that with how hard they try to be welcoming and playful but I think for most people Bitcoin will be the first thing they hear about)
As for fave 1.0 currencies. My personal favorite is Noirbits because I designed the coin logo and even managed to mine one block. It was the only coin I ever successfully solo mined and it was such a great feeling to succeed at it. As far as I know it has sunk into obscurity by the deluge of alts that came on board in 2013 and is barely being traded. But I'll always have fond memories.
I think for anyone who has the time it's fun to read up on all the 1.0 currencies and see each flavor. But I doubt any would supersede Bitcoin anytime soon unless something monumental happens in favor for the alt and is simultaneously catastrophic for Bitcoin. I have no idea what that would even be unless somehow an enormous 51% attack succeeded and another 1.0 proved itself as superior to all the other with a strong majority agreeing it to be the best currency to move to. More likely there would be a ton of fighting among the currencies to be king of the hill. It's probably for the best if Bitcoin holds that position especially since the world is still just beginning to see cryptocurrencies develop.
2.0's like Mastercoin, Bitshares, Counterparty, Ethereum, NXT, and Colored Coins are the real exciting stories right now. This is the space that I think is the most interesting and cutting edge. I think Ripple could also be considered in this space but they are definitely a different category in my mind for a number of reasons.
I think 1.0 competition is a very good thing, both for Bitcoin and for the other alts. I agree that bitcoin is unlikely to be toppled for a while, but it seems to me that no one can remain king in the digital universe for long as tech keeps making huge advances.
As for me, I think the alts are a fun environment to play in, especially for those of us who were too busy to figure out how to throw a few bucks at Bitcoin back when it was trading below a dollar (still kicking myself). I'm not operating under delusions that I will buy an alt at $.05 cents and then see it skyrocket to $1000, but it's not a stretch that it might hit $1 or even $10. I've already doubled my money on a few alt stakes as going from .05 to .1 is a much easier step than going from $645 to $1300 (although I'm sure Bitcoin will easily exceed that in the future).
The 2.0's are an entirely different story and I'm excited to see where all those will lead.
Ps. Don't take any of this as investment advice. I've lost my shorts on a few alts as well as gained. Currently, I'm in net positive but that could change tomorrow. Don't invest what your not willing to lose is good advice to live by. =)
