This is almost a textbook definition of a ponzi scheme. The moment the US Department of Justice declares it one, it'll be over for all cryptocurrencies, nearly world wide. And that can't happen soon enough.
And this is where you show you have no idea what crypto is...
Why does crypto have value you ask? Well... Let me try to explain that.
For one, you don't need any 3rd party, be it banks, funds or whatever else, to save your wealth. Crypto allows you to have direct custody over your own wealth. That was never possible before. At least, not for large sums.
Secondly, crypto is mostly decentralized. The ones that aren't decentralized are more likely to be scams. What does it mean to be decentralized? It means that no single person or entity has control over it. Why is that important? Because there is no single point of failure. Look at how many times people were propagating that China controls crypto. China is now cracking down on it, and, what happened? Well, in reality, nothing. Everything still works just like before. The only difference is that people get scared easily and start selling their bags while institutions are buying them up.
Thirdly, crypto does not require regulation for everything. The technology allows programming of specific features, which makes the system impossible to be played, if done right. For example, there are regulations for borrowing money. Crypto does not require these regulations, because the rules are coded beforehand. You can borrow at most 50% of the value of your assets in most cases, and, if you cannot comply with payments, you simply automatically lose your crypto to pay for your debt. But using this is entirely in your own hands, and you generally get warnings when you're getting close to being liquidated. You can also freely set your own crypto for borrowing and gain interest. The interest is determined by the market itself, not by any centralized entity. You should seriously look into DeFi.
Lastly, crypto will ultimately force everyone to be responsible. Do you know where all the scams and hacking happens? When people give their custody away to someone else. THAT is the center issue. People still have the mentality that someone else needs to take care of them. That is and always will be a recipe for disaster. With crypto, you basically have to take care of yourself in order to survive this market. There is nothing more close to a free market than crypto. And that is a good thing.