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

Well that makes sense because, as you might notice in my comment, people are currently putting their money in what they think is safe and they are NOT putting their money in crypto. BTC has gone DOWN. DOWN means more people were selling than buying. DOWN means they put money somewhere else, in the topic of this discussion that includes securities such as but not limited to Private Equity.

Crypto is useful as a currency not controlled by any singular nation. It is more easily tracked than any other currency as it has a permanent public multiple ledger system, which makes it harder to do crime with. BTC in particular has a higher adoption rate and therefor lower volatility, and many countries will either accept BTC at some stores or have infrastructure to exchange BTC with the local currency such as a kiosk or ATM. It is possible to store and transfer without need of a bank or a payment gateway built on ancient IBM secrets. It’s very useful.

USD is fake money. Yuan is fake money. Rubles are fake money. It’s all fake, none of it has any value except what we all decide it is worth.