We have already seen that few assets (such as gold and cash) are free from counterparty risk. These are typically tangible, portable and fungible, and always in the owner’s possession.
However, because of these qualities, the only barriers between would-be thieves and such assets are physical. If thieves overcome physical barriers (such as locked doors), they can steal and use the asset.
Bitcoin taken into self-custody is also a fungible and portable asset without counterparty risk. But because it is not tangible, it can be much harder to steal than cash or gold. For example, if thieves make off with your pin-code protected hardware ‘wallet’, they still cannot take your Bitcoin. Even if they hold you at gunpoint, you cannot give them bitcoins stored in a geographically distributed ‘multi-sig wallet’ where you only have access to one of the signatures.
Bitcoin is theft resistant.