In general, a market crash is not a good thing. Demand hits the rock bottom, prices drop, and the value of people’s assets diminish. Still, there are few advantages for those think long term. The entire cryptocurrency market is connected and the price of one currency changes with others, whether there is a positive or a negative correlation. Bitcoin was the first cryptocurrency and it is the most accepted by the wider population. There are too many factors involved, so it is hard to predict what the cryptocurrency community looks like. It is certain that any kind of the complete Bitcoin crash would have an immeasurable impact on the entire market.
In the short period of time, the effects would probably be devastating. Every skeptical person on the planet would get a chance to say “I told you so”, and the adoption rates, in general, would go under. The value of every currency would drop and supply would get too large. That could increase the impact of the crash and lead to the permanent break of the market.
Nevertheless, over a long period of time, the cryptocurrency world without Bitcoin could be a better place. Bitcoin is the largest when it comes to the market cap. That would be a great thing if the people who buy Bitcoin weren’t mostly oriented on storing value, whereas a significantly smaller percentage of those people really being there for the transactions. This prevents a market from growing since it is necessary for global adoption to use cryptocurrencies as a regular method of payment.
Another note: considering the transaction time, it is obvious that people wouldn’t be able to use Bitcoin in everyday occasions even if they wanted to. So, without Bitcoin, the market could once again become oriented to the value transfer and other useful features that blockchain technology offers, without hyped day-traders. In that case, the development could take another turn in the right direction, although only to some extent.