For people who back Bitcoin - every time this happens it undermines your thesis about Bitcoin. Blaming the victim and similar rhetorical tactics don’t correct the harm to the public image of Bitcoin done by scams.
Two systems for two different use cases.
https://ec.europa.eu/info/business-economy-euro/banking-and-...
We are not speaking about hacking here, simply about banks failing. Bank which failed, it happened 10 years ago, who knows when the next crash is happening...
> Bank which failed, it happened 10 years ago
For what it's worth, governments have gotten progressively better at regulating banks in a way to make such failures increasingly unlikely. We have a similar system in Canada, with protection capped at 100k CAD. The last time they had to pay out was 1996. Failures were frequent in 80s and 90s, and then they just stopped. Not by miracle, but by regulation. The government had learned how to avoid failure instead of allowing it to happen and reimbursing the stakeholders.
https://www.cdic.ca/about-us/our-history/history-of-failures...
1. A fraudster obtains your credentials and steals money from your bank account: The bank reverses the entire transaction and makes you whole. You get your whole money back, no matter the amount.
2. The bank goes out of business: Worst case scenario, the bank has no assets, the government reimburses you up to 100k CAD/100k EUR/250k USD depending on the country the bank is located in. A lot of times, bankruptcies are due to liquidity issues, not insolvency, so you would get back most of your money, even above the caps here, eventually. Also, because the government is not just the insurer, but also the regulator, it has gotten much better at avoiding bankruptcy and this does not happen often these days (at least in Canada).
I am not sure what failure mode you are concerned about: one where fraudsters steal so much money that the bank goes under, like tens or hundreds of billions of dollars? And the transactions are somehow irreversible?
To a first approximation, they are impervious to theft (registered to me personally and accessible via treasurydirect.gov) and devaluation (indexed to grow with inflation).
But also, this is hilarious nitpicking from fans of digital "currency" that can't be used to buy anything or even moved for less than a 20 dollar transaction fee. [0]
I'll put treasury bonds up against bitcoin as a stable store of value all day. How much are you up? Getting nervous to sell, or gonna HODL strong?
[0] https://ycharts.com/indicators/bitcoin_average_transaction_f...
Indexed to grow with CPI, which is a wild guess[1] since 1980.
[1]: http://www.shadowstats.com/alternate_data/inflation-charts
Any new technology has (incorrect) underlying old assumptions, so there are always people utilizing them and abusing them.
In 1981 if you were talking to a girl you never met on the phone, then chances are she was actually a girl. In 2001 if you were talking to a 'girl' online in text, then chances are you are being catfished on the internet.
In 2021, if you are just doing video and audio verification in a similar situation, chances are you are being catfished by Machine Learning [1].
Technology scams (as opposed to Social engineering scams) are an indication of how radically different new technology is from the assumptions people have about it (for instance, all the old ladies who are being still scammed by Indian call centers out of their life savings).
1. https://www.news18.com/news/buzz/japanese-influencer-posing-...
People who say bitcoin can never work because people fall for scams don't understand what the technology can do and don't understand where the technology is going. All of these problems are very solvable.