There is a better competitor - real money. The fluctuations in Bitcoin are way too risky for any serious investment (between $120 and $150 in just a month? No thanks!)
In its short life, Bitcoin has outperformed every other asset on the market and is holding its value. It's up almost 10x from where it was this time last year.
That's not actually considered a good thing when it comes to currencies (as opposed to commodities).
That may be true for money issued by a central authority. Bitcoin appears to upset a few apple carts as far as conventional wisdom goes.
On the other hand: from $0 to $140 in 2 years? Oh god yes!