That's a very interesting question. Obviously, the answer would depend on what you are using crypto for. In general though, it can be said that bitcoin in particular and cryptocurrencies in total are for those who don't want to have anything with the government. In practice, it means that you can safely hide your coins where no one will ever be able to find them unless you tell yourself (but then it is an entirely different matter). It seems pretty straightforward that you can't hide digital fiat, i.e. the money you keep in your bank account. But it is not much different with cash money either. You can actually hide it, but then you won't be able to get from anywhere. You will have to actually show up and visit your stash to use it. Crypto saves you from such headaches while saving you from the government eye at the same time.

This is what you can do with bitcoins and can't do with dollars, either digital or otherwise.