The crypto market has an high level of volatility, anyone who is about to make an investment need to have a good understanding of the volatile market. Now the question is even with the volatility will you still choose crypto over fiat when it comes to making investments?
Making investments in crypto or fiat? Or using crypto or fiat for other investments? These are two different scenarios, in the first one, you buy a certain cryptocurrency or save money in a certain fiat currency hoping for its value to increase over time against your local currency so that you can get some profit. The second one is using either cryptocurrencies or fiat for making investments in something else, like a business or something, that will generate revenue for you.
For the first scenario, I believe cryptocurrencies, especially Bitcoin, would probably be a better choice since it's volatile and its value tends to go up from time to time and drop as well, but it eventually generates some profits for you. For the second part, I believe it's better to simply use fiat to invest in a business or something, also because cryptocurrencies can't be invested directly as they aren't widely accepted.
Your clear separation of direct crypto purchases from using crypto as a way to invest in other things is perfect. Let us make this clearer. Blockchain-based cryptocurrencies like Bitcoin and some others have seen huge gains over time, making them look like an investor's dream. Despite this, it is important to be aware of the risks, especially since the market is based on speculation. Some people see volatility as a sign of chance, but its also deceptive. Its common for big benefits to come with big risks. One idea is to diversify your assets.
And finally, using fiat currency to start traditional businesses gives you more cash and, well, fewer problems. The cryptocurrency ecosystem isnt developed enough for businesses to spend easily. To top it all off, the rules and regulations in many countries make it even harder to access. Sorting through those murky waters is almost like a pointless activity. While you're thinking about starting a business, stick with cash for now. Its generally believed for a reason.