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I don't think there's a problem with it (except speed of transactions), but there's really nothing that bitcoin is doing that any clone can do. And then you have competitors like ethereum which can do the same as bitcoin,plus more. And it has more dapps which make me think even developers are ditching btc for other platforms.

I don't think so because we see everywhere people are only accepting bitcoins for now and convincing them to implement bitcoin based payments itself is hard, other altcoins are a different story I believe.