This seems like a major bug with crypto. I don't have physical possession of my bed when I get up from it and go to work, but I've yet to come home and discover a grifter, or conman sleeping in it.
Likewise, if I lose my car keys, society still manages to acknowledge that I am still the owner of my car.
And there's the much more important case. What if someone gets your keys? With bank fraud you will most likely get the money back. With crypto, not a chance.
Likewise, if I lose my car keys, society still manages to acknowledge that I am still the owner of my car.