Honestly OP, your posting way to many paragraphs in this thread, I bet only a few have read it to the end. Others may just be posting a comment to answer the topic subject. Better post a query with minimal words or lines not a long one.
Anyway, as been posted by purplefinder in a post by Gemcrypto below regarding crytoscared people, it is one of the few honest opinion about fiat we are using. Those fiat don't really have the paper money to support or back their issued checks, this is their way to usher in more investors but they don't really have the cap.
Having said that, in that lens it is then safer to invest in crypto rather than in banks. But we should be aware that there are pros and cons, advantages and disadvantages, crypos also have theirs.
Only that banks have been institutionalized, and cryptos are not. Hence, the more trust in banks.