It's a trust issue. And trust and competence are inextricably linked.
Most of us with career-track jobs use electronic deposit to an account at a bank, and keep things there. The account is "yours", and the trust is established over time--most people using most banks continue having access to their deposit of record most of the time. When that fails, you get a bank run--which is systemically undesirable, but also ends with people not having "their" money. They thought it was theirs, but it turned out not to be.
If your bank started publishing poorly-written notices about how they'd terminate accounts and retain holdings for certain customers based on arbitrary behavior, and kept changing that definition, would you leave "your" money there--even if the only alternative were to purchase precious metals and lock them up yourself?
This doesn't make much sense as you would use something like this to keep your keys safe.
It's a trust issue. And trust and competence are inextricably linked.
Most of us with career-track jobs use electronic deposit to an account at a bank, and keep things there. The account is "yours", and the trust is established over time--most people using most banks continue having access to their deposit of record most of the time. When that fails, you get a bank run--which is systemically undesirable, but also ends with people not having "their" money. They thought it was theirs, but it turned out not to be.
If your bank started publishing poorly-written notices about how they'd terminate accounts and retain holdings for certain customers based on arbitrary behavior, and kept changing that definition, would you leave "your" money there--even if the only alternative were to purchase precious metals and lock them up yourself?