What would you say is the limiting factor in Nostr?

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the limiting factor for Nostr is indeed the learning curve. A lot of people might find it a bit intimidating at first, and that can definitely turn them off from getting started. It’s a bit of a barrier to entry

Eventually Bitcoin and Nostr are too important not to learn how to carry your own keys. Not a reason for failure or coming up with a Nostr or Bitcoin replacement.