[rtpg]

I am not 100% sure, but my understanding is that the bank is liable for those losses unless they can prove gross negligence on your part. I've heard that legal argument, at least. [0]

Though this is not worse from your cryptocurrency. If they get a hold of your private keys, you lose everything. At least in the classical banking system you have some legal recourse.

[0]: I might just be thinking of this comedy sketch though: https://www.youtube.com/watch?v=CS9ptA3Ya9E

[mrb]

"they get a hold of your private keys, you lose everything."

Hardware wallets solve this (Trezor, Keepkey, etc.) This makes Bitcoin more secure than cash. Most people accept the (imperfect) level of security of cash, so they would be OK with the higher level of security of hw wallets.

[hueving]

They would be okay with higher security, but not higher risk of it breaking. Cash doesn't rely on advanced circuitry so I don't have to risk losing $50,000 because of some static electricity.

[mrb]

Hardware wallets can be backed up. You can even have 2 hardware wallets using the same cryptographic seed and both able to spend the same BTC. You won't lose any BTC if a wallet gets destroyed.

[rtpg]

Serious question: if you're using a hardware wallet, can people accept payment from you without worrying about double spends?

[guard-of-terra]

How is it any different compared to software wallet?

[guard-of-terra]

Your private keys have limited attack surface, especially if they're in cold storage.

However, your banking account has unlimited attack surface. It's on some remote information system that you do not control and never will. As I already said, I'm not a big believer in "legal recourse", it's as well to be used to take money from you as to return them back.