How does competition from other cryptocurrencies affect Bitcoin?

Competition from other cryptocurrencies affects Bitcoin by driving innovation and pushing for improvements in its technology and usability.

Newer cryptocurrencies often offer faster transaction times, lower fees, or additional features, attracting users who might otherwise invest in Bitcoin.

However, Bitcoin maintains a unique position as the first and most widely recognized cryptocurrency, often seen as a digital gold standard. This strong brand and network effect provide Bitcoin with resilience against competitive pressures, though it must continue evolving to maintain its dominance in the ever-expanding crypto market.