Just like people invest in a house and take equity out on it. Or they buy gold because they think it'll go up in value over time.
Regardless, you're being pedantic at this point. Back to the original discussion, there is utility to crypto now, and I've proven a way.
The point is that, unlike consumer loans, such loans require that the borrower has savings before they can take the loan. For example, most people who take a mortgage do so because they don't want to save money for 30 years before they can buy a house. They want to buy a house now, and save later. A mortgage loan allows them to do precisely that.
These other loans don't, and so they're less useful. They aren't completely useless. It's just that in most circumstances they aren't useful.
EXACTLY my point. If we actually turned lending and borrowing around so that you had to have collateral first (1), that could actually transform an entire economy, as well as people's minds away from spending what they don't have.
Credit card debt is at all time highs and they are raping people with high APY's on those funds.
(1) In SE Asia, they don't have the concept of credit reporting agencies and thus their 'credit cards' are all collateralized (what we refer to as debt cards). Living there is what turned me onto this concept and how it is a better way to do things. You can't spend more than what you've already deposited and you actually earn interest on it too!