>To put this in simplest terms: Every cent someone makes from whatevercoin, has to be put into the system by someone else. A house appreciates in value since living space is a scarce commodity facing growing demand...it's sarcity and thus its appreciation in value is a natural process caused by usefulness and demand.

You just fell over your own point there. Both houses and bitcoins go up in price if the demand for them goes up or the supply of them goes down... calling demand 'put into the system' when you disapprove changes nothing.

Also there are plenty of people who use houses as 'tokens of value' only to flip them when the market is favorable, and there are plenty of people who use crypto as a functional currency when other options are unfavorable to their circumstance.