AI/ML barrier to entry is far simpler and vastly user friendly compared to crypto. Instant value return or gratification from ML products (GTPs and rest) is far more mainstream friendly.
Another view is the "loss" factor. Nobody, thus far, has has had their funds stolen or lost using ML products. I understand content creators and those who, unwillingly, contributed knowledge to learning systems did get circumvented but i'm talking about users/customers. Compare that to the negative stigma of crypto frauds and stereotypical association to illegal transactions.
Apples vs. rotten oranges in my opinion!
Crypto's sole usefulness remains in providing money transfers/liquidity in parts of the world where the local systems are failing or off-limits to the users.
Its secondary value is buying and selling legal goods and services on the internet without having to deal with credit card companies, but only for techbros.
Nah. Far more people use crypto for speculation than for actually illicit purposes.
Fiat money derives its value from what you say, indeed. It is traded on exchanges because of that. But fungibility is only one of several factors. Money should also serve as store of value, but how long is highly debatable and the point.