Does Crypto Have Real Value? Arguments & Key Insights

Crypto has come a long way from its beginning.

What was once viewed as an imaginary digital currency is now a global financial asset.

One central question remains from Bitcoin, Ethereum, Tether, and thousands of other coins and tokens: “Does crypto have real value?”

For every person who refers to Bitcoin as digital gold, there is a skeptic who sees crypto as a speculative item and a bubble waiting to pop!

This notion is especially confusing for beginners, who might be afraid to jump into the world of crypto but have an interest in it.

In this post, we’ll break down the arguments for both sides.

We’ll explore crypto, compare it to gold and fiat currency, and see what experts and government organizations are saying.

What Does ‘Real Value’ Mean in Finance?

Before jumping into the real value of crypto, we need to define what “real value” refers to.

In finance, “real value” is the underlying worth of something.

This can be what it can do, how it’s used, or what people are willing to trade for it.

It’s not only about price.

It’s about usefulness, scarcity, and trust.

Common Examples of Assets and Their “Real Value”

Crypto is different.

Digital currencies don’t have a physical form, and they’re not backed by a government.

Their value comes from what they can do (utility) and what people believe they’re worth (perception).

If millions of people trust a coin, use it to transfer money, or build applications on it, like they do with Bitcoin or Ethereum, it starts to have value like these other assets.

@wolfofwallstreet Bitcoin is definitely not about buying pizza—it’s a long-term store of value with the potential to become a powerful reserve asset. Is it time for the US Treasury to wake up and catch on? #jordanbelfort #wolfofwallstreet #Bitcoin #CryptoInvestment #economy ♬ original sound – The Wolf of Wall Street

Does Crypto Have Real Value?

Depending on your stance on digital assets, you can argue either side.

Yes! Crypto Does Have Real Value

In our opinion, YES. Crypto does have a real value, and here is why we and many other experts believe it does:

1️⃣ Decentralization & Transparency

One of the core reasons people believe crypto has real value is its blockchain technology.

Blockchain is a decentralized digital ledger where every transaction is recorded, verified, and cannot be altered.

This provides transparency and security that traditional financial systems do not guarantee.

2️⃣Scarcity and Supply Caps

Bitcoin’s value is also tied to its limited supply.

There will only ever be 21 million Bitcoins in existence.

This makes Bitcoin similar to gold in the sense that it is scarce and hard to find.

3️⃣ Utility in Transactions and Smart Contracts

A whole other part of crypto is its utility.

Ethereum, for example, supports decentralized finance (DeFi) platforms on its blockchain, along with smart contracts and NFTs.

These tools allow you to lend, borrow, and trade assets without needing a bank or middleman organization.

As of early 2025, the total value locked (TVL) in DeFi protocols is around $55 billion.

Blockchain is also being used in supply chain logistics, identity management, and even gaming economies.

4️⃣ Global Accessibility & Inflation Hedge

In certain countries like Venezuela and Argentina, local currencies have suffered a lot from hyperinflation. Because of this, many citizens are now looking to Bitcoin and other stablecoins to preserve the value of their currency.

Crypto serves as a hedge against inflation, where traditional money rapidly loses purchasing power.

Investing in crypto can be the only survival mechanism for many people living in these regions.

No! Crypto Doesn’t Have Real Value

As we mentioned before, not all analysts think that crypto has real value.

To play devil’s advocate, here are some reasons why critics disagree:

📉Volatility & Speculation

One of the biggest criticisms is crypto’s volatility.

Since crypto prices can swing so dramatically within days or even hours, many critics argue this makes crypto unreliable as a store of value.

🪙❓Lack of Tangible Backing

Unlike fiat currencies (backed by central banks) or gold (which has physical use), crypto is not backed by any tangible asset.

Its value is based only on supply, demand, and collective belief.

This makes it difficult for some to trust.

⚖️Uncertain Regulation

Regulation is a major concern for everyone.

In China, crypto transactions are banned. In the U.S., the SEC has taken legal action against several crypto exchanges and even has labeled some tokens as unregistered securities.

This leads many potential investors to look the other way, as they are uncertain or afraid of the clear rules to follow.

Comparing Crypto to Traditional Assets: Gold, Stocks, and Fiat Money

When people ask, “Does crypto have real value?” It helps to compare it with more familiar assets like gold, fiat currencies, and stocks.

Each has its own purpose, and crypto shares traits with all of them while also maintaining its unique attributes.

Expert Opinions: What Do Economists and Investors Say?

When it comes to answering the question “Does crypto have real value?” Expert opinions are divided.

Some see it as a revolutionary asset class, while others think it’s a fad and a scam.

Pro-Crypto Perspectives

Both Cathie Wood, CEO of ARK Invest, and Michael Saylor, the founder of MicroStrategy, believe that crypto, especially Bitcoin, is digital gold.

Cathie cites Bitcoin’s fixed supply as the driving force behind its value, estimating that BTC can reach a value of $1 million by 2030.

Michael and his company are the largest institutional holders of Bitcoin. He sees it as superior to other assets because of its portability, divisibility, and scarcity.

Crypto-Skeptics

On the other end is famous stock market investor and financial guru Warren Buffett.

He has consistently dismissed crypto, once saying that “cryptocurrencies have no unique value at all.”

His views are traditional, focused on cash flow and tangible assets.

You also have Nobel Prize-winning economist Paul Krugman, who is a strong skeptic of crypto.

He refers to it as a Ponzi scheme, arguing that it relies more on recruiting new investors than on real economic utility.

Institutional Interest

Another key player, apart from the analysts and economists, is the institutions.

In January 2024, the U.S. SEC approved several spot Bitcoin ETFs and Ethereum ETFs.

This is a very important point in crypto, as it offers more access to cryptocurrencies but in a more traditional and regulated format.

As of 2025, Bitcoin ETFs have gained over $50 billion in assets under management.

Should You Consider Crypto as a Valuable Asset?

Many people have strong ideas about crypto.

Regardless of your stance, cryptocurrencies are evolving quickly and are becoming more integrated into mainstream finance.

If you invest in Bitcoin and other crypto, make sure to use a reliable hardware wallet to store your funds and keep up-to-date with regulations, responsibilities, and insights.

FAQs

Is crypto backed by anything?

• No physical asset backs most cryptocurrencies. Rather, they’re supported by blockchain code, mathematical rules, and user consensus.

Why do people say crypto has value?

• Because of its limited supply, real-world utility, decentralized structure, and growing adoption across industries and countries.

Can crypto be considered a real asset?

• Yes. With institutional players entering the space, crypto is increasingly seen as a legitimate asset class.