Balloons were invented (by the Hittites, I believe: them or the Canadians) to be fun for human beings. But they’re fun for cats, too.
Our cats, Robbie and Peep, are much too timid to tangle with balloons. Otherwise I’d buy them some. Most of the cats in this video don’t freak out when they burst the balloon. But I know two cats who would have nightmares about that for a week.