1. Paying ransomware. 2. Buying drugs. 3. Day-trading.
That's it. There's no meaningful slice of the pie that goes to #4.
Almost all of us can agree that #1 is illegal, many people and countries currently believe that #2 is illegal, and almost all of us can agree that people participating in #3 should probably pay taxes on their gains/get tax credits on their losses.
Ironically, that's the strongest long term feature. But probably the one driving the least amount of volume (outside of hyperinflation states).
If the only reason for it existing is to show how many you have, it has zero value outside the possible curiosity of "Having the largest number that happens to match this set of arbitrary mathematical restrictions"
What external transaction use does is even out the day to day value changes and decrease volitility (transaction volume >> trading volume).
Without that, you'd see some value placed on it, but a large price moves as trading affects it. Come to think of it, that looks a lot like... hmm.
Anyone caught with large amounts of crypto can be treated as a criminal, the same way people who have large amounts of cash on them are treated. It's obviously harder to spot someone walking around with a hoard of crypto coins, no black briefcase required.
This is just another tool in an already very expansive toolbox. All in the name of "security".