[depaya]

That is a funny example to use because the US Government has a service specifically designed to help you in that situation: https://www.bep.gov/services/mutilated-currency-redemption

Yes obviously if your money is completely burned then it's gone, but that is generally pretty unlikely to happen. Losing your digital key is many orders of magnitude more likely to happen in my opinion. And there is - by design - absolutely no way to get it back. That makes using blockchain for anything serious completely untenable in my opinion.

[andresgottlieb]

It doesn't need to be completely burned to be gone:

"No redemption will be made when (...) Fragments and remnants presented which represent 50% or less of a note are identifiable as United States currency but the method of destruction and supporting evidence do not satisfy the Treasury that the missing portion has been totally destroyed"

Not that unlikely, in my opinion.