crypto can’t really be a true currency replacement
Its been increasingly popular among the unbanked, as it grants a lot of the functions of the modern financial system at a marginally lower cost than check cashing companies and payday lenders without requiring the participant to be considered “credit worthy” by the transacting institution.
You can have a digital wallet and make digital transactions and you don’t need to carry a giant wade of cash on you all the time, even if a traditional financial institution wouldn’t touch you. That’s a boon for crooks, sure. Its also a boon for people working in the gray market - migrant laborers sending money home to family, state-legal pot/mushroom dealers who don’t have federal sanction and can’t use normal banks, gig workers and other contractors, international workers and businesses needing a universal currency to trade against. And its a boon for the working poor, particularly folks who don’t have a physical bank nearby.
Because the currency has material benefits for the unbanked (and therefore legally vulnerable) population, it becomes a popular place to ply scams and grifts and other dirty financial tricks precisely because you know the people you’re fleecing will have no legal recourse after the fact. But that’s the parasitic nature of second class citizenship.
You’re not vulnerable because you’re using crypto nearly so much as you’re vulnerable because you’re denied access to traditional banks and courts.
I am aware of this, still doesn’t make it a viable replacement for traditional currency
Not for someone with access to the traditional banking sector, no. But for those locked out, it’s the only available alternative.
It is only good for that at a limited scale. The issue is that it’s adoption will be stymied, governments not wanting to give up hold to their influence over currency, or not, by the simple fact that it is either in a near constant state of deflation, or it gets abandoned by the broad market. There will have to be one implemented that has it’s scarcity regulated in such a way that it retains a mostly gradual inflation. The way their scarcity is currently designed it essentially forces the currency value to increase significantly, without huge periods without value growth, or it gets dumped.
A block chain, crypto, that holds a relatively steady value, in a similar manner to normal currency, is what will be needed for it to truly take off as a full market replacement.