I understand this reasoning but what concerns me is that crypto is diluting the commodity pool and in effect boosting the value of fiat. All that is required is for the central banks to declare the newest NFT or Crypto flavor a commodity and the fiat will flood into it and create support for the government backed fiat currency.
If there was no crypto how much more fiat would be in circulation already?
What is more concerning is that what seems to be a virtue of crypto in not having government backing, seems like a perfect opportunity for world central banks and governments to collude to manipulate crypto value without consequence by crashing the market through regulatory action and effectively dissolve a large amount of the fiat pool.
I doubt that the majority of public will blame governments for destroying an anti government construct, no matter how loud the anarchist voices get .
Crypto has no value whatsoever in "creating support for fiat". Fiat is supported by trillions of dollars of debts and taxes that must be paid in it. Next to that, the crypto ecosystem is tiny, unstable, not closely tied to any one particular currency and not particularly useful in generating economic growth. If there was no crypto approximately the same amount of fiat would be in circulation, possibly a little less.
I do like the creativity in imagining that somehow it's not fellow cryptoenthusiasts manipulating the markets though.
"Crypto Idiots" are a damn fine scapegoat for the insane monetary policy currently rolling out of the white-house.