Crypto is digital cash, not digital credit. If someone steals your physical wallet, you generally aren’t getting that cash back. Can we please dispense with this kind of hyperbolic nonsense?

You wouldn't carry large sums of cash on your person, so why are people considering large piles of cryptocurrency?

People actually carry large sums in many places where credit cards aren't prevalent. Like Japan.

The analogy isn't credit. It's a bank. I doubt people carry much of a percent of their total Yen wealth in their pockets.