Criticism often comes to online wallet providers (Xapo, Coinbase, etc) saying, if you don't own your private keys, you don't actually own your bitcoin.
That's not criticism, that's just the reality of the situation.
On the contrary, if your cash is in a traditional bank, you don't really own your cash either.
How is that "on the contrary"? You're saying the same thing about both. I don't think that phrase means what you think it means.
The only possible difference, traditional banks have been around longer, and more people trust them.
That's the "only possible difference"? Really? There aren't any other possible differences?
Do they both operate under the same government regulations?
Are your deposits insured in both by the Federal Deposit Insurance Corporation (or some other equivalent insurance underwriter)?
Are they both held to the same financial audits?
Many bitcoin users who criticize bitcoin vaults, store their cash in a traditional bank.
Some do. Some don't. So what?
Hypothetically, if Bank of America, or Barclay, or DeustcheBank announced they've invested millions into a highly protected, advanced, security architecture, would you trust someone to store it then?
That would depend on the specifics of the situation, but probably not.
Are critics right to say, don't use an online wallet provider, it's not safe?
Yes.
