Appreciate the honest answer. Yes, if we treat Bitcoin like cash then it's a non-issue because you would just keep a small portion of your savings in cash (Bitcoin) so losing it from a mistake would just be a lesson learned, not a life altering event.
That said, my understanding of what the Bitcoin community espouses is the complete disconnect from the fiat system. This means banks, savings accounts, brokerage accounts, etc. In this case, where would someone store their savings which could be in the tens or hundreds of thousands (if not millions)? There are many people with retirement accounts with these amounts and if one day they just went to zero because someone transferred all the funds out, that would be devastating.
There's like levels to this stuff:
  • Custodial ( or hosted ) wallet
  • Single sig non-custodial regular wallet
  • Single sig hardware wallet approach
  • Multisig
  • Collaborative Multisig with Failsafe ( AKA Casa Bitcoin )
  • Qualified Institutional Custodians like Coinbase / BitcoinSuisse
  • Fully Insured Custodians like Knox Custody
All depends on your risk profile.
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