[toyg]

> this category of failure is not unique.

But it is solved by the banking system: if the bank burns down, insurance will make you whole. If a distributed cryptosystem burns down, you have a lot of worthless bits.

TBH the real category of failure we see here is more like a Central Bank suddenly declaring half the money in the country is fake and worthless, and inadvertently wiping half of the existing bank accounts. It's the sort of thing that might happen once in a century, or less; cryptocurrencies seem to see one every few weeks.

[meeton]

India did that!

https://en.m.wikipedia.org/wiki/2016_Indian_banknote_demonet...

[mercer]

Correct me if I'm wrong, but isn't that entirely different on account of not 'suddenly' declaring your money fake and worthless, but rather allowing people to bring their money to a bank for other notes?