A fascinating question. It needs answering by simple questions.
1) When was the last time you, or someone in the circle of your family and friends, has lost a digital file?
2) When was the last time you, or someone in the circle of your family and friends, has lost a gold bar?
Nobody I know has ever lost a file that was worth thousands of dollars.
2) When was the last time you, or someone in the circle of your family and friends, has lost a gold bar?
Nobody I know has ever owned a gold bar. They are too risky and difficult to protect.
If you understood crypto wallets you would know that there are numerous safeguards that one can put in place to prevent them from "losing" a file. You can generate a seed phrase consisting of a series of words that you can use to restore your wallet. You could theoretically walk across an international border with $1,000,000,000 inside your head. Now do you get why the government hates it so much?
In keeping with the gold/crypto comparison...
Can the government take gold bars from you by force?
Can they force you to reveal a series of words stored only in your head?
How much does it cost to protect gold bars?
How much does it cost to protect a series of words in your head?
Crypto > Gold