Note that it's no different from ATMs with a $500 per day limit. We can have a broader discussion about physical security, but it's clear this isn't a problem

Note that it's no different from ATMs with a $500 per day limit. We can have a broader discussion about physical security, but it's clear this isn't a problem that's unique to bitcoin at all. In fact, bitcoin allows anyone to configure their security according to their own risk profile, and retain full financial privacy in their ordinary lives. I'm not saying it's a perfect world with bitcoin and that you're fully secure against overwhelming physical intimidation and force, but as I mentioned in another comment, acting like this is a unique problem to bitcoin just isn't true. For digital extortion it is true, bitcoin is unique, for physical extortion it isn't. The reason being that it's very hard to send money without a trace digitally without using cryptocurrency, so bitcoin is unique here. If you run an extortion over Paypal, you're in jail by the end of the week usually. But physical extortion is possible because cash (or say jewelry) from ATMs is difficult to trace, bitcoin doesn't make this any easier. On the contrary, I'd rather steal from my ATM card than from my bitcoin wallet, as I only have $150 or so in a non-multi signature wallet, but my ATM has a $1250 a day limit, because I can configure my risk profile with bitcoin myself.