USA Federal Reserve wants modest amounts of inflation, because by slowly devaluing currency, it encourages people to do productive things with it, rather than hodling.
But right now, inflation is too high, and if need be, they'll inflict pain (like starting a recession) in order to rein it in.
There's no point in returning to the gold standard, and in fact, gold is a great example of a non-productive asset. It's decorative, and has limited industrial applications, but otherwise, it just sits there.
I don't expect a return to the gold standard or anything similar. In fact i think Britain's return to the gold standard in 1925 exacerbated the international contagion after the US stock market crash in 1929. Sterling couldn't take the load as an alternative reserve currency. But that's not the common view, of course.
There's no way out of the world of floating currency values and the question of what is backing a currency in practice. It's just worth pointing out that cash, or anything else, is not a guaranteed asset in this day and age. Crypto is not as exceptional as we might think, though the value of most coins, at least, is much more tenuous than many other things. Even the Mona Lisa may suddenly become publicly regarded as a piece of tat, no longer worth seeing, one day!
I'm also going to point out that this is an international forum and your answer is somewhat US centric, and we do need to take into account the international ramifications of the sharp rise in US interest and the resulting demand for the US dollar, as well. Given the cause of the current round of inflation, that's not a simple question.
There is always, when the value of investments is under threat, a tendency to buy US assets and currency and to move out of other currencies, and we can see that happening at the moment.
As cryptocurrencies are the riskiest of all, we could expect a rush out of them at this time as well. It doesn't mean they are dead, any more than say the Australian dollar is "dead" because it's value against the US dollar has fallen by 15% or so in the last few months. The difference in the fall in price of non-US currencies and other investiments represents the perceived difference in the degree of risk of owning those things... and cryptocurrencies are being seen as much riskier than most national ones, that's all.
