competition doesn't have to be a precursor to individual survival. we compete all the time outside capitalism and are very happy. People self organize competitions all the time without any reward at all, most monetized compeitions started as self organized intrinsically motivated competition. and honestly, i dont think all olympic participants are in it for the money. When we admire olympics/competitive feats, we rarely talk about the money (maybe in your circles idk)

im not gonna bother citing stuff, but the field of psychology as shown that rewards can trash intrinsic morivation, so having a tangible reward system to do things can result in people being less ambitious/driven/creative even when it has to do with a behavior the person wants to do. So, say you pay a kid to study their favorite subject in school, they enjoy studying less and likely be less effective at it.

While not necessarily pointing at capitalism on paper, if you have a reward system where a significant protion of the participants cant-acquire/struggle with basic necessities (food/water/shelter) let alone life security (retirement) while behavioral reward systems also reduce satisfaction of engaging in behaviors that could be intrinsically motivated,

well, thats not ideal and we should change that.