You know what the harshest truth is? Majority of those who have Bitcoin don't even have the private keys with them.
That is very true, they store their funds in centralized exchanges and custodial services because they think they do not have what it takes to be their own bank. Despite all the events that has happened with exchanges, ~~snip
Some of them even think of bitcoin like stock, the paper is being stored elsewhere which is funny but it's expected, people aren't really invested into learning the technology for most of the time.
They just want to profit and having BTC held by custodian wallet is safe from their perspective because there's regulation to protect them which is not wrong, some exchange also part of SAFU basically emergency fund to protect users' fund.
Undeniably though, it's better safe than sorry being our own bank is always better, even with emergency fund there's no guarantee we'll get our money back or if we do, it'll be lengthy process.