We the hodlers believe that Bitcoin can be hacked only by hacking cryptografic hash-functions, which will lead to collapse all the banks, all passwords on all websites, maybe some data structures like hash-maps.
> or I get scammed in some way, where is my legal recourse?
How will you get scammed if you have a backup which you promise to yourself to not even introduce to computer with online? Also nobody recommends you to hold all your wealth in crypto. Some metals work not bad also, my favorite example is copper.
> But state regulation nullifies a lot of what bitcoin advocates claim is the advantage of cryptocurrency.
Let me guess, you have not read / have to reread the bitcoin.org/bitcoin.pdf whitepaper?
