Paper Wallets can be encrypted, which makes it more secure than cash, but still is open to a regular robbing with weapon use (Tell the password or die), but the main problem I think is that it can be destroyed very easy.
Also regular robbing will work in this case also,a gun pointing to your head will force you to decrypt your Core wallet or to give your paper wallet.
Ledger Nano S has a feature to protect you against a regular robbing (like tell your private key or die).
It's called Alternative Pin or Hidden Account.
How to set up and/ or recover a hidden passphrase and alternate PIN on your Ledger Nano S? The hidden passphrase is used for two reasons
1. Protection of your 24 words recovery phrase if your accounts are behind a passphrase then you are protected.
2. "Plausible deniability" is a security feature that combats the risk of being threatened and/or forced to enter your PIN code. With this option, you can manage two PIN codes, unlocking two separate accounts:
- Your first PIN code provides access to your main wallet, like a basic account, with low amounts used for daily payments and small transactions.
- Second PIN code, linked to a specific passphrase you need to set up, opens an hidden account, to save large amounts, which will only be used occasionally. With this option, in case you are forced to recover a wallet from your 24-word backup, only the main wallet will be displayed, and the second account will remain hidden, as long as you don't reveal the attached passphrase.
It works like this: You you will have 2 PIN. So if someone gets inside your house and say "give me your bitcoin or die" you can unlock just the basic wallet with your PIN. The other one is totally hidden, only unlockable with the second PIN.
This is a feature which not many users know... But pretty useful.