Every asset has a downside. Money in the bank isn't exactly guaranteed either. I know that in the future when I have enough to be concerned about loss protection that there will be a couple of gold bullion coins stashed away somewhere as well as coins in a secure offline wallet that I also have offline signing set up for.

Something else that is important, I think, is that even if you were not personally directly affected by the fall of Bitfinex and others, if you held the tokens they lost, the failure of the exchanges had an effect on the value of the currency anyway. This is also why I look forward to the day when there is no more centralised exchanges.

Even the big professional stock exchanges have had this kind of issue in the past, long before cryptos even existed.