The myth of Cryptocurrency going to zero value and why that is practically impossible

Coin Analytics
2 min readJul 16, 2021

I find it extraordinary how many articles or propaganda machines still flood the news or social media with statements such as Cryptocurrency has no intrinsic value therefore will go to zero. This is not only inaccurate but grossly mistaken in comparison with other currencies.

The first thing to realise for starters your fiat currency such as the dollar and pound actually do not have intrinsic value. The gold standard long ago was removed from these currencies and has no pegging to anything of material value. Also bear in mind that because your central banks have an infinite supply of money that they are proud of and have been encouraging governments to borrow more. This results in hyper inflation that causes the currency to lose value. The dollar has already lost over 99% of its value.

The other clear distinction of cryptocurrency is that they are mostly deflationary such as Bitcoin because of its limited total supply. Therefore relative to fiat currencies it will have the effect of gradually increasing in value over time. Also another fact to consider is that cryptocurrencies use technologies with cryptography such as blockchain that are effectively data storage devices and therefore actually in fact do have intrinsic value.

Bitcoin value comparison over time

You may ask why that is? Data in itself has value just ask the many successful tech companies out there. The challenge as always has been how to utilise it or monetise it securely. This is where the crypto market has boomed in with various types of coins or tokens providing utilisation of data in various ways for services or products.

Another element to note is that some percentage of the Bitcoin supply over time has been lost due to various reasons. One of those being that a percentage of Bitcoin owners lost their private keys to their wallet. Another is that the original owner of Bitcoin potentially never going to move their Bitcoin.

It has been reported that approximately 2.8 to 3.6 million BTC or over $100 billion is permanently unavailable, have a look at the unspent transactions outputs report. Therefore it’s safe to say that base value is permanent. In comparison to fiat money everything is recoverable. So from a traders perspective this is something significant to consider. Bearing in mind over time this will continue to grow.

Ultimately looking at the facts it’s easy to see that the expectation of Bitcoin should actually be that it will increase in base value infinitely over time and of course market or trading cycles will mean it will have a significant level of volatility. But then that is great for the traders to increase their ability to gain profit and is not much different than any forex exchange volatility.

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