It's true that any digital data can be lost, but so can physical data ...

Once I opened a trunkful of my books that had lain unopened in a damp part of my house for some years, and they had all rotted, and had to be burnt. In the list I gave above, there is a similar story regarding my mother's Gaelic 78s. When I was about 6 or 7 I had a favourite which I wanted to put on our record player, but one of my older brothers pushed me aside wanting to put on a different record, the 78 fell to the floor and smashed, I wailed, Ma came in and retrieved the pieces and all the other 78s and hid them away somewhere. I never saw them again until after she died, when I went around her house systematically checking every room ensuring that nothing had been left behind. Looking under her bed, I found a case, a record case, and in it were all her Gaelic 78s, but it had been against a damp wall of the house where a gutter had leaked and hadn't been fixed, so they, too, had all rotted away, and I had to bin the lot - it's probably the only time in my life that I've laughed and cried in the same breath.

Yes, digital data can be lost, but it's a lot easier to make copies of it against that happening than it is for physical media. I did the digitising getting on for 15 years ago now, but despite hard disk failures in the servers, etc, I've not lost any significant work, because I keep copies of everything - note that in my original description above I said I DUPLICATED the recordings onto two small server boxes, one of which I took with me, the rest stayed with my stuff in storage. Yes, I could lose everything to a catastrophic fire, but likely that would burn all my books and CDs as well.