Bitcoin is not backed by any asset. This should be intuitive because Bitcoin is not controlled by any person or organization. Therefore, nobody is in a position to make this promise, and they would not gain anything by taking on the massive liability associated with ensuring the backing.
The lack of backing does not mean Bitcoin does not have value. The value of Bitcoin comes from their properties. Bitcoin has the characteristics of money (durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like fiat currencies).
Then it comes to the point of Confidence. Why are you confident on BTC? Is it a musical chair game?
I'm not going to say that it is or not, anything can be or hapen, but there are some keys for confidence despite the price volatility:
- Did the creator was revealed: No.
- Did the rules changed: No (only devs can do).
- Was it hacked, stopped or controlled? No.
- Is it Descentralized: so far yes.
- Do you know the owners of accounts? No. But this is the most important point from my point of view. I trust in Bitcoin properties, but my confidence in Bitcoin grows when companies like MicroStrategy publish their balance and their average price. If more companies do this, my confidence will increase and I will have less fear in case of a major drawback in price.
Therefore, I think that the next objective of the community is to try to get as much as institutions willing to publish their balance and average price.