If not for loaded terms like 'Bank' and 'Exchange' people would think about this rationally and demand that all services buy comprehensive insurance to cover si

If not for loaded terms like 'Bank' and 'Exchange' people would think about this rationally and demand that all services buy comprehensive insurance to cover situations like this. Unfortunately they've been lulled to sleep by things like blanket FDIC coverage that, while it pays out after a crash, pays out in weakened money. Bitcoins provide a chance for trust to be based on economics (escrow, insurance, audits, etc) not by government fiat. But you can't fall asleep at the wheel and just expect everything to work.