I'm not surprised honestly, the majority of people who hold any BTC are just holding it for the fiat value and they absolutely plan to sell it in the future back into fiat. So buying hardware wallets seems like a complete waste to them. Getting people out of exchanges is hard enough so getting people to get hardware is never gonna be the norm for the average user.

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Also I understand that not everyone who has BTC plans on selling it back into fiat I'm speaking of the normie people who just hold it for this purpose.