Weird, I know friends who lost all their savings to cryptocurrency. Don't know anyone who lost all their savings due to inflationary monetary policy.
2) The Bitcoin price is currently comparable to its all-time highs. So someone who lost all their money on crypto was doing something more exotic than just buying and holding a diverse basket of cryptos.
I would give the same advice to people who freak out 'oh my god, inflation, it's going to eat all my money, even though I live in stable America and not Argentina' - chill out. Instead of freaking out and putting your money into unstable investments that have a high non-zero change of going to zero, find a way to make more money.
Stories of people who put their money into risky investments that promised high interest, only to lose their shirt, are quite common in crypto at least - those people would have been much better served just keeping their cash.
Your second point makes zero sense - BTC is 40% lower than it's all-time-high, I just looked it up. Other cryptos are much worse.
Regardless, being down 40% is not losing all the money. It isn't even losing half the money.