Busting the Crypto Boogeyman: Why The Value of Digital Assets is Real
Main Takeaways
Cryptocurrencies are not backed by physical assets, but neither are most modern currencies. It turns out that a currency doesn’t have to be “backed” to have value.
Numerous real-world use cases, from buying pizzas to banking the unbanked, prove crypto’s value – along with a bustling global community and a strong and growing ecosystem of builders, products, and businesses.
As adoption grows, the myths surrounding cryptocurrency are unwrapped, revealing the candy of tomorrow.
As we near Halloween, shadows lengthen and myths abound, few are as persistent as the belief that cryptocurrencies hold no real value – and thus, can one day just disappear without a trace, leaving users with nothing but a sense of regret. Much like a ghostly apparition, this myth often emerges from a misunderstanding: Cryptocurrencies, skeptics say, are untethered to anything physical. No gold reserves, no central bank guarantees — just digital assets floating aimlessly in the vast, ethereal expanse. But much like the eerie myths that accompany this spooky season, this one deserves a closer look. If you’ve ever wondered whether the value of crypto is a mere phantom or something tangible, it’s time to uncover the truth behind the "boogeyman" of crypto.
Phantom or Solid Backing: The Secrets Behind Value
Before we get carried away by the spooky idea that cryptocurrencies are uniquely "unbacked," let’s address the reality of currency value. Once upon a time, governments tied their money to physical assets like gold, anchoring it in something tangible. However, those days are long gone for most modern fiat currencies. The U.S., for instance, abandoned the gold standard in 1971 under President Nixon, and since then, the dollar has been a fiat currency. This is proof that value is based on government regulation and market trust rather than the physical commodity itself. Today, the value of government-issued money — the dollar in your pocket or the euro in your account — comes not from gold reserves but from something far more elusive: trust. Trust in governments, trust in institutions, trust in economies.
Cryptocurrencies follow a similar path. Their value doesn’t come from physical assets but from community trust, utility, technological security, and scarcity. Like a modern-day alchemist, the crypto network turns these elements into something far more substantial than the phantoms many perceive. It’s the shared belief in the technology behind blockchain and the finite nature of assets like bitcoin that drives their worth.
So, while it may seem like crypto’s backing is invisible, the foundations are as solid as the trust that supports them.
No Tricks, Just Transactions
Let’s shift our focus from the theoretical to the tangible. While some may still perceive crypto as untethered and unusable, the reality is far from this spooky myth. The proof? Real-world stories that pull crypto out of the shadows.
10,000 bitcoins bought two pizzas in 2010? This was the first-ever real-world transaction using BTC, a quirky moment that has since gained legendary status. But this transaction wasn’t a one-off. Today, cryptocurrencies are not just used to buy pizzas but to purchase everything from online subscriptions to physical goods via platforms like Binance Pay. There are even crypto debit cards that allow you to convert digital assets into spendable currency instantly.
Perhaps even more significant is how crypto is reaching populations previously untouched by traditional banking systems. In parts of the world where opening a bank account feels as fruitless as chasing a shadow, cryptocurrencies offer an alternative. This is known as "banking the unbanked" which is happening across Latin America, Africa, and beyond. With just a mobile phone, individuals from all around the globe can access the blockchain to join the global economy — bypassing the need for traditional financial institutions.
Take freelancing payments, for example: In countries like Argentina and Nigeria, freelancers working with international clients frequently face delays and restrictions in receiving payments through traditional banking systems. Cryptocurrencies can break the chains of these limitations, enabling faster, more reliable transactions.
Cross-border remittances paint a vivid picture of crypto’s potential. In countries like Nigeria and Argentina, cryptocurrencies like Bitcoin are being used to send remittances, helping individuals avoid the steep fees associated with traditional services, which can charge up to 10% per transaction.
In 2021, Nigerians alone received over $2.4 billion in crypto remittances. By utilizing cryptocurrencies, individuals can significantly lower transaction costs, allowing families to retain more funds sent from abroad. This increase in available resources enables them to invest in essentials like education, healthcare, and small businesses, enhancing their financial well-being. As families allocate more funds toward education and healthcare, they are better able to escape the grips of financial uncertainty which ultimately raises their standard of living. Additionally, investments in small businesses foster local entrepreneurship, creating jobs and boosting economic activity within communities in Nigeria. Together, these factors contribute to sustainable economic growth and a brighter, more promising future for many families.
This is proof that the digital world isn’t just some ghostly echo — it’s real and impactful, especially to the “unbanked.”
Ethereal Expansion
What happens when the myth of crypto fades, and we begin to see it for what it truly is? As adoption grows, what once seemed like a phantom currency is becoming increasingly tangible. In fact, by 2024, an estimated 6.8% of the global population, or over 560 million crypto owners worldwide, are proving that digital assets are far from being just whispers in the night.
The winds of change are sweeping through industries and governments alike. Major companies, from global retail chains to tech giants, are accepting cryptocurrencies as a valid payment method.
Furthermore, entire governments are starting to take digital currencies seriously. El Salvador, for instance, made headlines when it adopted BTC as legal tender, while the Bahamas have launched their own central bank digital currency, known as the Sand Dollar.
This growing adoption shows that while still in its early stages, cryptocurrency is quickly gaining real-world value and recognition. The fear of the unknown — crypto’s perceived lack of worth — is fading as more people and institutions embrace blockchain technology.
Final Thoughts: The Busted Crypto Boogeyman
Like all myths, the idea that cryptocurrencies are worthless is slowly being dispelled. The evidence — real-world use cases, growing trust, and mass adoption — suggests that digital assets hold a value that’s very real, even if it doesn't feel as real as holding cash in your hands. While skepticism still lingers, the crypto space is proving that the boogeyman of worthlessness is just another ghost story that doesn’t hold up under scrutiny.
The message for those still haunted by these fears? Stay curious, stay informed, and watch as the world continues to embrace the value of digital assets. The era of crypto isn’t just arriving — it’s here to stay.