I’m just speaking from the economics of your points here, but people put their money in crypto because they think it’s safe. It’s simply not true by and large.

They certainly put it in precious metals and commodities that are not tied to any specific market or nation. That’s why Gold and Silver just had historic market performance, but there are no large market shifts towards crypto or speculative financial assets for anything other than a bet.

Before you start in with the “crypto isn’t speculation” stuff…it is. It has no inherent value, is not tied to real world goods or services, and has no political benefit. This is why institutions, including nation-states start wars over commodities, not crypto. If markets crash, a government can use its gold reserves to pay for things. If interest rates rise, they can use commodities as leverage to counteract negative impacts.

Crypto has absolutely no use except for people who want to collect crypto. If a World War breaks out, crypto will be useless. You can’t pay for grain to feed your people your Pokemon cards, and you can’t buy raw goods for your production sectors with crypto. It’s just not a thing.