Paper money (and a reliable banking system) solve that problem, and the paper money is backed by a gold monetary base, it helps restrain the monetary printing press and assure price stability. For many decades, the world did fairly with the US and the European powers on the gold standard, with paper money backed by gold and easily convertible into gold (and sometimes silver in the US). The Depression put an end to that due to an international gold squeeze that contracted the money supply.
The problem with crypto is that new cryptos can easily be created, which dilutes the value of all cryptos. In that respect, crypto can be like printing paper money, but with rich guys (instead of the government) having access to a printing press in the form of crypto mines.
As with paper money though, if a crypto is backed by and convertible into gold (as in Zimbabwe), it gains the benefit of gold's wide and enduring value. It also helps differentiate that crypto from competitors.
My guess is that crypto in current form will be disfavored by many governments and avoided by much of the public due to the FTX fraud and lack of effective regulation of crypto issuers and exchanges. The best case for crypto will then be a populist one in the form of a gold-backed, fully convertible crypto that resists inflation and has a well founded and transparent system of regulation.
Imagine if, say, Amazon and the top fifty US retailers and banks developed a crypto backed by and fully convertible into gold, with US government approval. If that happened, the current bitcoin type of cryptos without gold backing would swiftly decline in value and become irrelevant.
Crypto was sold as a medium of exchange. Everyone treats it as a lottery ticket.