How about simply losing your hardware wallet? That's what scares me. If I had enough crypto, I'd probably get a hardware wallet and store it in a safe deposit box, but then I'm going to lose that key.
I wonder if there is an opportunity for smart contracts around insurance for the exchanges...a bit meta...
Sounds hard, because it would be hard to prove that you lost a key. You could always pretend you lost it.
But if the blockchain supports actually invalidating those coins and transferring them to a new wallet via e.g. 3 trusted friends with pre-pregrammed wallets that sign and verify your new wallet, maybe it could work.
I wonder if there is an opportunity for smart contracts around insurance for the exchanges...a bit meta...