I think for any alternative coin to work it needs acceptance in the real world - like bitcoins. I feel there is more and more places accepting btc.
What are your opinions on ripple? I know it's not open source but when there is money making involved people usually have a big drive to make it work and develop applications for it.
It is going to be made open source in a few months. Ripple's architecture is almost perfect, and a very significant improvement over Bitcoin, except for its distribution method. An alternative is going to be developed by people who like Ripple but don't see its distribution practice in good light. I expect both of them to compete against each other over the next 10 years, with neither winning over the other.