I know that I’m competent, because I have enough experience to understand the problems that exist in my field, as well as how to effectively solve them. There is no randomness or luck involved.
While hard work can certainly allow you to capitalize on opportunities that come along, you have almost zero ability to create opportunities yourself. My current economic status is exactly because I randomly received an offer and worked my butt off to achieve success. Someone I know who is just as competent as myself isn't nearly as successful simply because he hasn't had the same lucky break. Bill Gates and Steve Jobs both worked hard, but both had random chance heavily weighed by who their parents were at birth which allowed them access to computing in a way that wasn't generally available.