Consider the well known sequence $x_{n+1}=\sqrt{\alpha +x_n}, x_0=\sqrt \alpha, \alpha>0$.
How would one use the fixed point theorem to prove that it converges to $\sqrt{a} \ \ \ \forall a>0?$
Trying to see whether $f(x) = \sqrt{\alpha+x}$ is a contructor yields following: $$|f(x)-f(y)|=|\frac{1}{2\sqrt{\alpha+\xi}}| |x-y| \le \frac{1}{2\sqrt{\alpha}} |x-y|,$$ which suggests that $f(x)$ is a contractor only when $\sqrt{\alpha} > \frac{1}{2} $ or $\alpha>\frac{1}{4}$. But this is obviously false. What's wrong here?
The derivative of $f(x) =\sqrt{\alpha + x}$ is $\frac{1}{2\sqrt{\alpha + x}}$. If $x \geq 1$, then $$\frac{1}{2\sqrt{\alpha + x}} \leq \frac{1}{2\sqrt{\alpha + 1}} \leq \frac 1 2.$$
This shows that $f(x) = \sqrt{\alpha + x}$ is a contraction on $[1,\infty)$, so there is a fixed point in $[1,\infty)$.
If $x < 1$, since the sequence defined by iterating $f$ is nondecreasing, either it converges to a point below 1 or eventually it ends up in $[1,\infty)$. In either case it is convergent.