I'm well aware of the importance of network effects. I think you underestimate how broken Bitcoin is. Bitcoin would have to change in very big fundamental ways to stay competitive and I don't see it. It's kind of like arguing that VHS tapes won't be replaced because they have the network effect. I also think you underestimate how much more far reaching this tech is than "finding one coin to rule them all to replace Bitcoin."
Bitcoin is pulling further and further away from the competition everyday. The gap of usefulness and adoption is not closing. Bitcoin is increasing its usefulness faster than any altcoin, simply due to network effects. Adoption is driven by usefullness. BitsharesX is not useful because it has virtually no adoption. Technology can increase usefulness only to a limited degree.
Does Bitcoin have to change in fundamental ways to stay competitive? Well it is becoming more dominant and more competitive compared to altcoins every day, despite its glacial technological evolution. Usefulness drives adoption, not technology.
If Bitcoin is increasing in usefulness so much faster than any other altcoin, why will it have to change in fundamental ways to stay competitive? It's competitive superiority is increasing, not decreasing.
(I think BitsharesX might have a chance, toppling Bitcoin is a long shot, not a sure thing.)
Because of centralisation of mining via pools, Bitcoin can be crashed in a heartbeat by getting to two people. Far from being decentralised its incredibly vulnerable, probably more so than most banks. It's also slow and expensive (inflation)
I have no doubt that Bitcoin will be replaced in the medium term. It's unique selling point was that it solved the disadvantages of centralisation and was private. In practice it's very bad at both for most.
It's not pulling away from the competition either despite global exposure and massive investment this year it's down and struggling. Also a 5 billion valuation is nothing these days. It's very vulnerable.
Bitcoin will be replaced by something decebtralised, private and less volatile. Even better if you can store and transfer the value of traditional mediums of exchange in a decentralised private way like BitAssets do.
However if there was a sudden financial event it might benefit the most, so I hold some Bitcoin circa 18%. (Also despite the downtrend and volatility if you're staying in crypto it's more stable than most other choices if you don't want to follow them 24/7.)
Atm BTSX isn't a competitor as it's still new and in rapid development and is currently more CPOS than DPOS. + I guess they need the same merchant, PayPal type access as Bitcoin. But in general they're developing so fast that it's a few months away from changing everything.
Also who can compete with Daniel & Co?