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i agree with your main points though

However, it doesnt matter if you break your hardware wallet. You can use your recovery seed. And people can also come threaten bodily harm if you have $ in a bank.

Yes they can but you have a method of retrieving your funds if your account is compromised with tradition banking. With crypto when the money is gone its gone. Also the average person doesn’t want to go through the hassle of remembering a recovery seed or having to remember different key combinations. For early adopters it doesn’t matter but for the average consumer it does.

true! good points!