Maybe for the consumer, but if someone walks into a store (or online for that matter) and buy with a stolen CC, the bank will issue a chargeback and the store have to hand over the money, regardless of getting the goods back or not. All shops operate with a fee to cover losses like this.

In short, the consumers pay in the end. So at best we have protections in place such that the consumers share the bill.

> Yes, but victims of CC fraud have numerous laws and protections on their side that make it much easier to recover from this incident.

Very true, and likewise, CC users (both buyers and sellers) have numerous laws and protections that can make transactions annoying, difficult, or even impossible, and Bitcoin fixes some of those problems. Obviously, you shouldn't use Bitcoin unless you feel that Bitcoin's attributes are favorable to credit cards' attributes.

Is it not the case that one can back up their BC wallet into a locally encrypted file, in the event that their online wallet is compromised? I'm a user of coinbase, and have a local backup. I was advised to do just this: take a backup of my wallet, just in case something bad happened to the server. That way, I have legal recourse if push comes to shove.

If your online wallet is compromised and the coins are transferred to new keys, ten backups of the keys that USED to own those coins will be insufficient.