From Beavers to Bytes: Why Does Crypto Have Value?

When was the last time you thought, “I really need to go shopping for a beaver pelt hat today?”

Never, right?

Yet in the 17th century, these creatures native to the U.S. were all the rage. Their pelts were the equivalent of gold—luxury items that signaled wealth, power, and downright fabulous headgear.

Fast-forward a few centuries, and the once-coveted beaver hat has become a relic, something you’d only see in a historical reenactment or maybe an eccentric costume party.

Which assets are valuable and why?

What we consider “valuable” changes over time. Beaver pelts had their moment, just as gold rushes electrified the 19th century. Today, the spotlight has shifted toward digital assets—cryptocurrencies like Bitcoin and Ethereum, created in 2009 and 2015 respectively.

These digital assets are part of a new frontier that’s redefining what we treasure, how we trade, and yes, even how we think about the idea of “worth.”

Why? Let's discuss the Lindy Effect

Enter the Lindy Effect. It’s a term that basically says: the longer something has been around and proven its usefulness, the more likely it is to persist and grow in value. If it can survive skepticism, market swings, and the occasional sensational headline, it stands a stronger chance of becoming woven into the fabric of everyday life.

Bitcoin, at this point, has weathered more storms than many early critics imagined. Ethereum, with its focus on smart contracts, has been steadily gaining traction for its versatility. Every day these assets remain relevant, their future relevance arguably increases.

Obsolescence in assets

In the days of the beaver pelt craze, no one could imagine a time when hats made from those pelts would be completely obsolete. They were too entwined with social status and economic gain.

Yet, here we are in the 21st century, celebrating assets you can’t touch—crypto coins that live on the internet. These digital tokens have captured global fascination, so much so that giant investment firms, tech gurus, and even your neighbor down the street might be dipping their toes into the crypto pond.

Of course, it’s not all rainbows and rocket ships. Digital assets come with real risks—security challenges, volatility, and a learning curve that can feel steeper than the climb up Denali...err, Mt. McKinley.

However, just like early explorers braved uncharted territories for furs or gold, modern investors are stepping into the digital unknown, fueled by curiosity and the promise of future gains.

So, what's valuable?

That’s the magical word. Beaver pelts once had it; now they don’t. Will Bitcoin and Ethereum always have it? Nobody knows for sure. But if the Lindy Effect is any guide, their growing acceptance points toward a future in which digital assets remain a staple of the global financial system, instead of just the next fad.

Ready to adapt?

Consider how you view “value." Is it wrapped up in tangible items—cash, real estate, old-school collectibles? Or are you open to the idea that a line of computer code could be as valuable as any shiny metal or furry pelt once was.

Have you joined the digital asset frontier? If not, why?