I'm saying gold sucks in the context of an economic collapse because gold can't be eaten nor has supply constraints compared to other precious metals for industrial purposes, two things that would still matter even in the failure of the economic system.
I didn't say cryptocurrency at large would fair any better in an economic collapse, which is why I mentioned selling it prior to such an event. Crypto is only successful in specific economic conditions.
Bitcoin doesn't have industrial demand, it's value comes from the service it provides, being a decentralized, secure, encrypted and uncensorable ledger, which, is something that institutions have already shown they value circumstantially.
This said, BTC's advantage at this point is entirely one of a first mover advantage and its currently larger market cap. Once ethereum moves to proof of stake of it will have greater decentralization and security by virtue of a higher cost of 51% attacks due to the nature of proof of stake and a higher node count, currently ~280,000 validator nodes on standby for the upgrade compared to bitcoin's paltry ~15,000.
ETH provides greater utility too in that scaling of transactions per second is actually on the roadmap and ETH supports smart contracts. The service that these protocols provide is what gives them value and demand as in order to use the service a user must pay transaction fees denominated in BTC and ETH respectively.
An example of a notable institution already using ETH is the European Investment Bank, which recently issued 100 million euros worth of bonds on the ethereum network.
This is their rational for using ethereum. "The EIB believes that the digitalisation of capital markets may bring benefits to market participants in the coming years, including a reduction of intermediaries and fixed costs, better market transparency through an increased capacity to see trading flows and identity of asset owners, as well as a much faster settlement speed."
Crypto will likely face a dot-com esque bubble at some point even if the economy doesn't collapse. But assuming a capitalist economy arises on the other side of that collapse crypto won't be going anywhere and would likely recover proportionally to other assets long term. Real cryptocurrencies with real use of course, the market is entirely unregulated and 9 out of 10 cryptocurrencies are genuinely scams/useless.
I agree with you in principle, it's all abstract nonsense like the financial system at large is. But this is the world we live in so why not take advantage of it if one can? Even Karl Marx traded stocks.