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The only thing you get from having your money in a bank account is government-mandated insurance, that covers you only up to a point.

That's like saying that the only thing you get from not being homeless is a roof above your head.

Deposit insurance shores up trust in the financial system as a whole, and prevents runs on the bank from desperate depositors if the bank has a bad quarter. Desperate people riot, loot, and create coups. There are trillions in $ value in having a stable economy with a population that has peace of mind.

But unlike banks your own cryptowallet does not have that risk at all.

Banks are simply custodians of your identity, no?

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