That's a bit simplistic. Fiat currency "works" by being backed by a state, implying that the state will work to protect the fiat currency's value, be that through fiscally responsible governing and/or the use of force to protect its interests. For states which can not guarantee that, the currency tends to rapidly lose its purchase power.

When I mentioned the societal nature of crypto, I meant something different. People who hold crypto have a vested interest in the wider adoption of crypto, and they often tend to become vocal proponents of crypto projects. I don't even claim bad intentions – I believe there is some psychological effect at play here that causes people to hold opinions that serve their interests, and becoming a crypto holder means that from that moment on, the spread of crypto is in one's interests.

Now, my point was, that perhaps I overlooked this sociopsychological aspect of crypto. If enough people in power are personally invested in crypto, and they use their power to advance crypto adoption because it personally benefits them, then at some point it doesn't matter whether there's any intrinsic value in crypto or not – it becomes a self-reinforcing system.