In the "real world", the recourse you have against e.g. pickpocketing is similarly non-existent (in theory, you have recourse in both the pickpocket and the crypto theft case, in practice, you're getting recourse in neither).
I'd argue that getting a software-only hotwallet stolen is comparable to getting pickpocketed or robbed of the cash you carry on you.
The crypto world is special because this often involves much bigger amounts than people usually carry around in cash, and most importantly, people negligently leave huge amounts laying around with minimal security, often because a) it wasn't worth anything when they put it in the wallet but appreciated rapidly, or b) because it's a lot of money, but it's not a lot of money for them because they are now multi-millionaires.
With a hardware wallet, it's much harder (not impossible) to make a mistake or get compromised.
>>With a hardware wallet, it's much harder (not impossible) to make a mistake or get compromised.
Of course, with a HW wallet, there are other footguns. I've read multiple sagas of attempted recovery from things like lost PWs, backups, etc., some successful, some not. And still the risk of HW itself being lost/stolen/destroyed/failed/etc. (&ya I understand that there are some recovery processes, which also must be balanced by how many recovery keys to create & leave around in 'safe' locations for such situations...)
I'd argue that getting a software-only hotwallet stolen is comparable to getting pickpocketed or robbed of the cash you carry on you.
The crypto world is special because this often involves much bigger amounts than people usually carry around in cash, and most importantly, people negligently leave huge amounts laying around with minimal security, often because a) it wasn't worth anything when they put it in the wallet but appreciated rapidly, or b) because it's a lot of money, but it's not a lot of money for them because they are now multi-millionaires.
With a hardware wallet, it's much harder (not impossible) to make a mistake or get compromised.