[pedalpete]

Yes, and people losing their savings when their banks went under used to be a thing as well.

That doesn't mean it isn't the most likely place for most people to hold their savings.

With any cold storage, you have to consider where you are going to keep the cold storage device. Are you going to run your own bank/vault (which was the original intent of crypto), or are you going to find a trusted party wit the correct protocols in place which will manage that for you?

For the people who have billions in crypto, the cost of managing their crypto probably makes sense. But at what point do you trust a 3rd party who's sole purpose is managing crypto?

I'm sure there is a world where the best way to store crypto is with a distributed service, rather than a wallet.

And note, I am considering the OP to be referring to a hardware wallet. Maybe that's wrong.

[blackbeam]

I'm the OP, and I'm not referring to any specific wallets of any kinds.

"I'm sure there is a world where the best way to store crypto is with a distributed service, rather than a wallet."

I think you've nailed it.

The best place to manage your private key / seed phrase could be the blockchain itself, as it is decentralized, distributed and open.