[hnaccount_rng]

Loosing my physical wallet will cost me: About a hundred euros (cash), the annoyance of having to get a replacement for the cards: - ID (probably 4 weeks or so and a visit to my Bürgeramt) - Medical Insurance (probably a week and a phone call) - 2 credit cards and a bank card (one, maybe two phone calls and a couple of euros) - a handful of membership cards, non of which are card only and only there for backup to the corresponding app I would say the total loss of this rounds to 100 euros and a couple of phone calls.

Your equivalent is not "loosing your wallet, it's loosing access to your bank account (which would cost at least thousands of euros). There is a difference! No, being in physical possession of my bank card doesn't give you the right to the contents of it. And there are _lots_ of redundant security layers beyond the simple card.

[zeroclip]

False equivalence. If you lose your crypto hot wallet, you might lose $100 as well. Much less of a hassle than losing your physical wallet with several important credit, debit, health, driver’s, and ID cards.

A hot wallet is meant to be used like cash in your pocket. Putting thousands or millions of dollars in your pocket would be unwise. The same logic should apply to a hot wallet.

You can store higher amount of wealth in a cold wallet, like a multi sig or smart contract wallet that has social recovery and transfer protection.