And yet that representation comes as zero comfort to anyone who has lost their money in a bank collapse. Representations guarantee nothing in practice. Lost savings are lost. End of story.
Irrelevant. Cars, houses, debt, or whatever resource can be stolen, destroyed, damaged, lost ... But that has nothing to do with this discussion. Here, currently, we discuss the difference between numbers that represent quantity of resources that people own and numbers that represent participation in Nakamoto's fraudulent investment scheme.