It is a good thing all of our IRAs, 401ks, issued currencies and markets are behind it and pretty much digital as well now. The flipside is that computer security is much better than the old human security with phones and faxes of back in the day. The newer systems are at least more verifiable and higher security.
Crypto currency or not, all of our money is now digital really, it has to be to move fast enough and keep up.
Well that's the point isn't it? We've tried pretty much everything troughout the last century, and the only solutions that seem to work in practice requires being reversible in the case of errors.
Ergo, most likely working solution for the 'money of the future' would be something that's reversible. You'd try to get the other advantages of bitcoin in the proper solution, such as instant, verifiable, cheap/free and easily scriptable global transactions - but abandon those that require irreversibility.
Yes transactions between financial entities should have some reversibility but bitcoin is more like real physical cash that also can be tracked. Stolen physical cash ends up in the same non reversible predicament.
The fact that crypto currencies leave a digital trail and verification actually makes it a tad safer than cash if it was a true stable currency which it isn't yet, but one that could offer that between larger crypto currency 'banks' which is what the market does now with real money, the networks and institutions aren't there for crypto currency yet.
Eventually entities will do the exchanging for you in return for the transaction reversibility, just using another currency or crypto credit. Already happening with stored wallets, exchanges and more. Eventually they will be banks. But currently bitcoin is as safe as having actual cold hard cash in your hands.
Even cash is slightly more "marked", since bills have serial numbers, and it's more difficult to launder large amounts of cash than to send BTC through a mixer. Doesn't help much in small-time cases like having $100 stolen from your wallet. But it makes it harder to make off with a large amount of cash and then actually spend it. A common way of tracking bank thieves is to blacklist the serial numbers and wait for alerts from cash-counting machines that check the blacklist (mostly at banks and back offices of large businesses). Then investigate the areas where blacklisted serial numbers pop up. It's not foolproof, but it makes it much harder to successfully do anything with $10m in stolen cash.
Crypto currency or not, all of our money is now digital really, it has to be to move fast enough and keep up.