For (2) one of the real values is being able to carry (practically) unlimited cash with you. Right now, USD in cash is capped at $100 notes to make it inconvenient to move large quantities.
With crypto, you fly anywhere in the world with a private key in your luggage. That key could have $100 or $1,000,000,000.
Thinking of international drug smuggling, one serious problem is moving all of the cash out of the country. Crypto solves that easily.
1. Making money by trading fun bucks.
2. Anything where you need a currency but all the way better options aren't viable (crime).