You're talking about financial risk like it's physics. Consider that financial risk is a psychological tool we invented to balance human behavior and we can reshape the tool whenever we want.
If you can consider that perspective, think about the activities we want to incentivize vs disincentivize in helping us decide when we _should_ reshape that tool.
Are simple bank deposits really something we want people to feel shaky about now and in the future??
> Are simple bank deposits really something we want people to feel shaky about now and in the future??
There is a strong argument for "yes": it will cause people to consider their (now extant) alternatives and some fraction of those people will choose something else, loosening the stranglehold that retail banking has on routine business transactions.
No, normal bitcoin. It doesn't take much to be less risky than "you might have all of it frozen at any time by factors wholly outside of your control".
Or Ether. Or DAI. Or USDC if that's your risk appetite (the diversification of the storage of which is abstracted away already, as you will note it has regained its peg before SVB even reopened under FDIC management). Or a lot of other choices that present themselves.
If you can consider that perspective, think about the activities we want to incentivize vs disincentivize in helping us decide when we _should_ reshape that tool.
Are simple bank deposits really something we want people to feel shaky about now and in the future??