That would mean that everyone has the understanding that you never keep large amounts of funds in this form because it's inherently dangerous to do so.
But a) that's very much not how people treat cryptocurrencies now, and b) I don't see how you could replicate some other features of cash, namely that you can fairly dependably protect your cash by investing in physical security, and that there is inherently no such thing as a vulnerability that can be exploited at scale.
> there is inherently no such thing as a vulnerability that can be exploited at scale.
There are, many. In the past 30 years, most European countries have gone through at least one monetary reform that made previously issued banknotes obsolete. The first wave was USSR's and its satellites' collapse in 1990s (with very unfavorable exchange rates to new currencies), and the second wave was the adoption of Euro in 2000s and 2010s.
> namely that you can fairly dependably protect your cash by investing in physical security
If you've generated your private keys offline and store them on paper, that paper can be treated the same as cash of the same value, and secured in a similar mechanism
> there is inherently no such thing as a vulnerability that can be exploited at scale
Counterfeiting has been a problem for cash holders for a long time. It's definitely a more severe vulnerability for crypto holders tho.
But a) that's very much not how people treat cryptocurrencies now, and b) I don't see how you could replicate some other features of cash, namely that you can fairly dependably protect your cash by investing in physical security, and that there is inherently no such thing as a vulnerability that can be exploited at scale.