Thats not a reason for crypto being useless, anything can bribe corrupt governments to pour tax money into it.
Crypto has shown people are willing to use it as a currency for investment and day to day transactions. Its held value for a significant amount of time. The tech is evolving still and people see a lot of value in having a currency that operates outside of Governments in a decentralized way even if some people will misuse that freedom.
> day to day transactions
Where is this happening?
Between me and my drug dealer
Money laundering? Certainly.
Black market goods? Of course.
Avoiding taxation? Absolutely.
Day to day purchases? Not that I've seen.