You are 'AbsoFreakinglutely' correct with the intrinsic value which is what we agree it is becomes what it is. The truth is this: Money isn't the paper you tender as an exchange of value or service given. The money i transfer to you from my banking App is basically numbers just as the digits we transfer in crypto.
There is not intrinsic value in anything even Gold as we can decide that gold isn't worth a dime and it is so.

Those that are scared of cryptocurrency due to their assumption of it's value are actually deep in valueless transactions within the Fiat system.