Forget Ethereum, Stablecoins, and XRP -- Here Are Bitcoin's 3 Biggest Trillion-Dollar Competitive Risks

Bitcoin (CRYPTO: BTC) has been taking it on the chin. The world's first and most valuable cryptocurrency is trading 44% below its peak (as of Feb. 9). And it's down 21% in 2026.

Investors might be thinking about some key threats. Competition within the digital asset market gets attention. Interesting things are happening with Ethereum, stablecoins, and XRP. This might take the spotlight off the dominant cryptocurrency.

However, investors should have their eyes on the bigger picture, focusing beyond the digital asset industry. Here are Bitcoin's three biggest trillion-dollar competitive risks.

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It's a global battle to attract more capital

Bitcoin has a sizable $1.4 trillion market cap. It has recognition and interest not only from more individuals, but also from governments, banks, and large pools of capital. It plays on a global level.

Consequently, Bitcoin's competition, particularly as it tries to become a more prominent store of value and reach broader adoption as an important asset to own, is different asset classes that represent enormous amounts of capital. In today's interest rate environment, there are three competitive risks not to ignore.

Capital is flooding enterprises that are developing products and services with artificial intelligence (AI) use cases. Just look at the "Magnificent Seven" stocks. Combined, they have a market cap of $21 trillion. Even if there is just a small chance that we see artificial general intelligence or artificial superintelligence, the upside is incredible.

The U.S. housing market, estimated to be $55 trillion (as of June 2025), is another capital magnet, especially if mortgage rates fall. This is clearly the single most important asset that many middle-class Americans own. Storing wealth in something physical is a mentality that's difficult to change.

And of course, there's the U.S. Treasury market, worth $29 trillion. It's incredibly liquid and backed by the full faith and credit of the U.S. government. Institutional capital will continue to view this as a leading reserve asset, even though gold's price surge might indicate a desire to lessen the dependence on the world's biggest economy.

Bitcoin bulls must be patient and adopt a long-term view

Any market participant, whether an individual, business, asset manager, or central bank, has differing risk tolerances and objectives. They're not all going to flock to Bitcoin simply because it has the highest potential upside during the next decade and beyond.

AI companies, housing, and Treasuries are all significant asset classes that aren't going to become irrelevant anytime soon. This just means the Bitcoin bulls have to remain patient and maintain a long-term view. It's still on an impressive trajectory.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.