> So can a bank and you will loose all your money just ask the people of Cyprus.
This is a silly comparison. In the USA, all deposits under $200k are guaranteed by the FDIC [1]. If the bank folds, you still get your money from the federal government.
I imagine many similar institutions exist in other countries.
Why there was no such institution in Cyprus baffles me. Perhaps they haven't had to deal with institutional bank failures before. The point is that deposits in Coinbase or other bitcoin institutions are not covered by any such insuring body. They are hence inherently far riskier.
It all comes down to likelihood of failure. When institutions like coinbase fail, we call that "thursday". But if the FDIC folds, you should be less worried about your money and more concerned about hoarding ammo and cigarettes.
The Cyprus banks didn't fail, the government confiscated a fraction of account balances. The FDIC guarantee wouldn't help you in that situation or many other types of national calamities.
Bitcoin has been around for 4 years banks for several hundreds.
Your point is true but trivial and hardly says anything conclusive or useful other than you don't trust 3rd parties.
With time you wont have to.