A cryptocurrency base project with real world/physical business, will definitely work and we already have some crypto project that does that (UbCoin) but offering physical business doesn't mean the project successful because of the project concepts, innovation, and community support is needed. However, 90% of the project that offers such service barely flourish and i believe it because crypto enthusiast considers crypto more as an asset than a currency.
1 - The reason for this is due to the fact that most people that are just getting involved with the space all think that crypto is a get rich quick scheme. So their own priority is for the price
This is understandable cause I also once feel like that before I later comprehend the concept and what it take to thrive through crypto.
2 - i wouldn't be quick to blame people who think about and use crypto this way as there's only a tiny percentage of projects with real world applications and price.
I actually dont blame people that sees crypto more as an asset than a currency which i believe is because they don't want to dust away from the opportunity the market can present but if we want crypto to be mainstream we also need to use it more as a currency in a 50/50 way.