It's the exact same flaw as cash. If you mess up and send it to the wrong person in the mail or set it on fire, there is absolutely no recourse, unless there's someone to sue maybe.
As long as you understand that I don't see the problem. I use cash a lot myself. Of course, we basically did invent the entire banking system to get away from the many downsides of literally lugging bags of gold around, like theft and loss without recourse.
