With crypto it doesn't matter whether it's you sending the money to the wrong address, someone who has hacked your account sending the money to the wrong address (and if you have insurance to protect against this, you'll have to prove it wasn't you), or a smart contract that someone slipped you without your knowledge sending money to the wrong address. You're out the money regardless. The last case isn't possible in non-crypto, and in the middle case you're protected by depositor's insurance in the US.
And yeah, I'm not using Zelle or a wire transfer unless I know who it is and what it's for beforehand.
For this reason, the choice is to only use credit cards where merchants have to pay exorbitant fees and end users have to pay massive APYs for borrowing.
If only someone could at least try to come up with a better system.
Payday loans and cash purchases? We have a variety of "systems", each with pros and cons. And hopefully that kind of diversity will continue into the future. For daily consumer purchases most crypto systems seem to have more cons than pros. For investment purposes I really don't know. And as a store of large chunks of value, maybe crypto will have an important role at some point.
Wait, there is a law that says that when a bank fails, the government has to step in and bail them out? Wrong. Otherwise, all banks would get bailed out.
> Does it offer the same coverage as I can get through chargebacks on a credit card? Does it cover me if I accidentally send money to the wrong destination?
No. You're asking for a credit card product. I don't believe that crypto has to be a credit card to be effective and useful. A good analogy is Zelle, which allows you to transfer money, but they don't bail you out. I'll tell you... even with bank wires, you send money... it is gone. Our finance department got phished last year. They didn't get the money back.
I'm curious when the last time you accidentally sent money to the wrong destination though. Is that really a common use case?