Key Points
Cryptocurrencies are not backed by physical assets. However, most modern currencies are not. In fact, a currency does not have to be “backed” to have value.
Real-world uses, from buying pizza to bankless banking, prove the value of crypto – reinforced by an active global community and a growing ecosystem of builders, products and businesses.
As the number of crypto users increases, various myths about cryptocurrencies are starting to be debunked, revealing interesting potential for the future.
As Halloween approaches, as the nights creep in and myths emerge, one belief that persists is that cryptocurrencies have no real value – that they could one day disappear without a trace, leaving only their users with regrets. Much like ghosts, this myth is often born from a misunderstanding. Skeptics argue that cryptocurrencies are not backed by any physical asset. With no gold reserves or central bank guarantees – they are simply digital assets floating aimlessly in the vastness of cyberspace. But like most scary myths that come along around Halloween, this one is worth a closer look. If you’ve ever wondered whether crypto’s value is an illusion or the real deal, it’s time to uncover the truth behind these scary “myths” in the crypto world.
Illusion or Real Thing: The Secret Behind Values
Before we get carried away with the scary idea that cryptocurrencies are somehow “unbacked,” let’s talk about the reality of currency value. Once upon a time, governments backed their money with physical assets, like gold. They tied it to something real. But for most modern fiat currencies, that’s long gone. For example, the United States went off the gold standard in 1971 under President Nixon, and the dollar has been a fiat currency ever since. This proves that value is determined more by government regulation and market confidence than by the physical commodity itself. Today, the value of government-issued money — whether it’s the dollar in your pocket or the euro in your bank account — comes not from gold reserves, but from something much more complex: trust. Trust in governments, trust in institutions, trust in the economy.
This is similar to cryptocurrencies. Their value comes not from physical assets, but from community trust, utility, technological security, and scarcity. Like a modern alchemist, crypto networks transform these elements into something far more substantial than the illusion many people have of them. The collective belief in the technology behind blockchain and the limited supply of crypto assets, such as bitcoin, are the main factors underlying their value.
So, while crypto collateral may seem invisible, its foundation is as strong as the trust that supports it.
No Cheating. Pure Transaction.
Let’s shift the focus from theory to reality. While some people still think crypto is something that has no guarantee and is useless, the reality is far from this scary myth. The proof? Real stories that free crypto from these myths.
10,000 bitcoins were used to buy two pizzas in 2010? It was the first real-world transaction using BTC, and a moment that has become legendary. However, this transaction was not a one-off. Today, cryptocurrencies are used to buy everything from online subscriptions to physical goods through platforms like Binance Pay. There are even crypto debit cards that let you convert your digital assets into spendable currency instantly.
Perhaps more importantly, crypto is reaching populations previously untouched by traditional banking. In parts of the world where opening a bank account can feel as futile as chasing shadows, cryptocurrencies offer an alternative. This is known as “banking without accounts,” which is taking hold across Latin America, Africa, and beyond. With just a mobile phone, people from all over the world can access the blockchain and join the global economy — without having to rely on traditional financial institutions.
Let’s take freelance payments as an example: In some countries, such as Argentina and Nigeria, freelancers working with international clients often experience delays and restrictions in receiving payments through traditional banking systems. Cryptocurrencies can break these barriers, allowing for faster, more reliable transactions.
Cross-border remittances provide a clear illustration of the potential of crypto. In countries such as Nigeria and Argentina, cryptocurrencies such as Bitcoin are used to send money, helping users avoid the high fees that traditional services typically charge, which can be as high as 10% per transaction.
In 2021, Nigerians alone received over $2.4 billion worth of crypto remittances. By leveraging cryptocurrencies, citizens are able to significantly reduce transaction costs, allowing families to earn and save more on the funds they send from abroad. This increased savings allows them to invest in important things like education, healthcare, and small businesses, improving their financial well-being. When families allocate more funds to education and healthcare, they are better able to escape the shackles of financial uncertainty. This ultimately improves their standard of living. Additionally, investing in small businesses encourages local entrepreneurship, creates jobs, and increases economic activity in Nigerian communities. These factors collectively contribute to sustainable economic growth, creating a brighter and more promising future for many families.
This is proof that the digital world is not just an illusion — it is real and impactful, especially for the “unbanked.”
Digital Asset Expansion
What happens when the myths about crypto start to fade and we start to understand crypto for what it is? As crypto adoption increases, what was once considered a phantom currency is becoming more and more real. In fact, by 2024, an estimated 6.8% of the global population, or over 560 million crypto owners worldwide, proves that digital assets are far from just a midnight whisper of horror stories.
The winds of change are sweeping across industries and governments. Major companies, from global retail chains to tech giants, are accepting cryptocurrency as a valid payment method.
Additionally, governments around the world are starting to take digital currencies seriously. For example, El Salvador made headlines when it adopted Bitcoin as legal tender. Meanwhile, the Bahamas has launched its own central bank digital currency called the Sand Dollar.
This growing adoption of crypto shows that despite its early stages, cryptocurrency is quickly proving its worth and gaining real-world recognition. Fears of the unknown — of crypto being perceived as less valuable — are fading as more people and institutions embrace blockchain technology.
Conclusion: Crypto Myths Exposed
Like all myths, the notion that cryptocurrencies have no value is slowly fading. The evidence — real-world utility, growing trust, and widespread adoption of crypto — suggests that digital assets have very real value, even if it doesn’t feel as real as holding cash. While skepticism remains, the crypto space is proving that the scary myth of crypto’s valuelessness is just another ghost story that’s proven false upon closer examination.
What message should be sent to those who are still haunted by this fear? Stay curious, stay informed, and watch the world increasingly recognize the value of digital assets. The crypto era is not just here — it is here to stay.
