What guarantees its value?

So if Gold holds its value through its precious metal status and physical money stores value by its government backing, what guarantees do we have with cryptocurrencies? ‘The simplest way to answer this question is a ‘’collective guarantee’’ of sorts is given’. The digital currency is not backed or owned by one establishment, country or central bank, but by the collective masses. 

Cryptocurrency transactions are not conducted through banks, but through a digital ledger known as a blockchain on the internet. The blockchain is made up of the ‘’collective’’, millions of users and these users verify that the cryptocurrency is owned by you and that it has been legitimately created by a miner.