I will highlight the core values of Bitcoin, due to which it will remain the main crypto currency. I will not stop and describe in detail every value. I will simply state the facts, and leave their interpretation as food for your brains.
The main value of Bitcoin is due to its rarity. Rare Bitcoin is a collection of two properties:
Limit the maximum number of coins 21 million.
Very high, increasing complexity of production. This makes the crypto currency as safe as possible.
The next value of Bitcoin is due to the fact that Bitcoin has long gained a critical mass of users and developers, creating an irreversible network effect.
The internal value of Bitcoin will be provided by the Lightning Network, other second-level protocols and sidechains. Thanks to the second-level protocols, there will be a direct financial incentive to accumulate and "block" Bitcoin.
Another important value of Bitcoin is its liquidity. Liquidity is an investment indicator of trust in an asset. In addition, absolutely all crypto-currencies are traded to BTC.
And that's why bitcoin will grow.
Speculate on expectations. Expectations are the most important component in speculation. The main expectations for Bitcoin are the world distributed reserve currency, analogous to gold. By the way, Bitcoin outperforms gold by almost all indicators for this role. In addition, at present it is impossible to deny that Bitcoin will not meet expectations.
Then about the market. Absolutely all markets consist of trends. In total, there are three market conditions, these are: an upward market (bullish), a downward market (bearish) and a non-top market (outset).
Each trend is conditioned and accompanied by the corresponding actions of market players who follow the trend. And also the trends are accompanied by emotional human experiences: optimism, fear, feelings and others. Following the trend, an overwhelming majority of the main trading strategies are being built.
Thanks to such strategies and emotional human emotions that a crowd of non-professional market participants have, the market is swinging like a pendulum - from an irrational maximum to an irrational minimum. Absolutely all markets have such cycles. Simply because of its easy accessibility and mass character, on crypto-currency markets these cycles go by an order of magnitude faster and more often. When Bitcoin breaks through strong resistance levels and shows clear signals to change the trend, players will instantly rebuild and will follow a new upward trend. Then the emotional crowd will connect and the market will again experience an optimistic irrational maximum.
These are all the cycles of the market, after completion of each of which to Bitcoin will only be added the number of users, investors, developers and other interested parties. This all adds value to this coin. The Bitcoin market cycles will continue until the reality does not meet expectations, but it requires clear and unquestionable arguments. After all, when the market falls, the technology does not change. Technology is always improving and gaining more and more network effect, and the universal world development of infrastructure confirms that humanity is interested in this seriously and forever.
