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 Anyone starting an argument with "we need to compete with X" where X is some shitcoin can be safely ignored. 
 Whether we have to compete with shitcoins depends on your goals for Bitcoin, whether you want NGU, and whether you are a maximalist of any definition. 

All monies do compete, after all. 

Typically, the actual scam is engineers portraying complexity as a scaling solution, which happens to all blockchains, including Bitcoin. 
 Y do we need to compete with X ? 
 we need to compete with fiat! 
 Yes, X is a shitcoin