While I agree somewhat with what you say about stock markets I'd say the problems you describe derive from an inadequate regulation. Especially short positions need to be made more transparent i.e.. But ultimatly, if you select your stocks carefully you at least hold a share of something that represents a real value, that either provides a material use, a service people really need - something that provides jobs for people that need to make a living.The stock market is by it's nature a big pyramid scheme. 'Insiders' IPO a company, drive up the price, then cash out at the top. Legitimate companies can be driven to bankruptcy by naked shorting and market manipulation. Even 'Blue Chip' stocks are based off the promise that some one else will take it off your hands in the future. Other than the odd dividend, it's value is based on what others are willing to pay for it. There are of thousands of companies that list on a stock market every year. Many of them are duds, ponzi schemes, and worthless penny stocks. Some of them, however, are diamonds in the rough. Just like one should do their due diligence and research their stocks, one should also do the same for Cryptocurrency.
There are plenty of 'Shitcoins' out there (Initial Coin Offerings are open to abuse) but there are also legitimate projects.
That's why I'm really annoyed with someone like Elon Musk. Instead of promoting a Crypto project that has real world uses (read up the real world applications of a blockchain like Ethereum) he trumps up a Crypto that has no real world application AND has an infinite supply.
I can forgive people for thinking that Crypto is all a big scam when the most talked about one right now is DOGE. Until that nonsense stops, there will always be a veneer of illegitimacy of the whole business.
On a parting note, you need to realize that Crypto doesn't replace Fiat national currencies. Eventually you still need to convert back to your national currency of choice to do anything. Your precious dollar isn't getting replaced and people need to realize that. Think of Crypto as yet another form of Securities (But shh...not really, don't tell the SEC!).
Whatever limited use crypto might have in the future just doesn't justify the incredible amount of ressources that get wasted by that stuff right now. I might be able to make my peace with ethereum once it's migrated to version 2.0 - maybe.
Anyway, I see you strongly distrust government and everyone should. But what you suggest is to put your faith in something that's even less reliable and accountable. People like Musk control this stuff and if it's not him it's Vitalik Buterin or some other dude with a big wallet and that won't change.
You basically said it yourself in another post. The whole crypto hype is driven by fear. Be it fear of inflation or fear of missing out. That's no healthy economy...