I started in live music by playing at one of the better jams in West London (the Drayton Arms, Ealing, formerly the King's Head, Acton jam).
Quite literally everybody in the room was a better musician than me, and the great majority (including the guitarists) were better bass players than me.
So? You have to start somewhere. If I could get in a time machine and go back those years - taking my bass with me, natch - there would still be plenty of better musicians there.
There will always be better musicians than yourself somewhere, if you look hard enough. So stop looking and enjoy what you do.