You are absolutely right.
What gives these things value is their utility and the market. And as long as WE find utility in them and endorse them government and the banks can do nothing.
A few people making poor financial decisions isn't going to stop this wave.
Many thousands of people day trade stocks on margin, I'd worry about that bubble first.
My experience is that fundamentals always catch up. You can only build so far based on feelings. You need something solid backing things up. As for cryptos there is math and utility backing up. Utility is outdone by better utility and math is outdone by.... NOTHING. Math is absolute.