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Are Cryptocurrencies And Blockchain Technologies The Next 'Industrial Revolution'?
There is little 'official' protection for persons who lose their funds to fraudulent actors.
Protection will come from its transparency and a diverse community. Today 'official' abuse is not easily corrected, where in an open source environment both mistakes and abuse surfaces quickly to be discussed, validated and corrected if required (read: supported).
Neither do they with cash. The only protection you need comes from contract law, which is independent from the traded goods/currencies.