Take a step but from the crypto and look at the blockchain and the benefits it brings.
Then consider what the value of the blockchain is worth.
As a 50 year that works for a bank I have never been more certain that banking in its current form will come to an end. We already have turned fiat currency into an unbacked store of value, a lot of which is purely electronic as the use of actual paper money is on the decline. The dependency you have to the use of a bank has only increased recently with the move away for cash, especially during COVID where those that could stay open refused to use cash. We have already seen a substantial drop in the use of ATMs and Armaguard are complaining there is not enough work. So we are in an electronic world already and defi offers an alternative.
I think people are getting caught up in the volatility of the crypto and yes there are risks as some of the blockchains are like risky share investments that have a viable offering but terrible execution. The share MSB is a classic example. Jump to that thread and see the community of investors that are so hellbent in their belief that they are not prepared to listen to anybody that says different even as they continue to lose money.
Gold is just another alternate asset that is priced based on demand and supply which oscillates with inflation and credit fears. Not too dissimilar to BTC really but BTC is limited in supply and anyone can buy it. How do you value gold? Is it not what someone is prepared to pay for it? Crypto is not any different but cryptos use case is becoming more evident, at least to me. In the same way I do not dump all my wealth into one asset, I have not put everything in crypto but have slowly been increasing my allocation.
The mere fact the regulators are starting taking notice, I think indicates crypto is here to stay and the greater risk is not having some of your wealth in cryptos. And as with any investment do your research.
