> The idea that a layman is going to reasonably protect their bitcoin assets is silly.
Take wallet.
Encrypt wallet.
Put sufficiently complex password on wallet (ie, no dictionary attacks).
Wow, you suddenly have a bank. Feel free to back up that file all you want, hell, if your password is solid you can publish it publically. I wouldn't, since you don't have to, but you still won't password crack it any time soon.
What's a wallet? A digital one? What the hell? Wait, there's a paper one too? What's the difference? Store the paper ones in a vault somewhere and use my digital one? How does that work? How do I encrypt these wallets? What is encryption? And I'm responsible for storing my wallets? I can't just pay someone to take care of them for me? Oh, I can, ok, are these companies insured and trusted? Let's just take a step back, how are Bitcoins stored in these wallets? I mean, what is a Bitcoin, really?
In other words, you're being disingenuous as to how simple it really is to get set up for Bitcoin. There are countless threads on Reddit and the like by confused geeks asking for advice and instructions on wallet generation/encryption/storage/etc.
They're MIT students; just because they aren't STEM majors doesn't mean they are idiots. These are concepts that should be within their grasp, even if it is too complex for the general public.
Hell, throw a brief rundown into whatever their equivalent of "University 101" is if it really does prove to be a problem.
Can they follow an online tutorial? Sure. Could they find converting their cash to BTC with the proper safety measures in place too cumbersome a process to make the experiment worth their time and, if not careful, their money? Absolutely, and that doesn't make them idiots.
Some people really like tinkering with new tech and are willing to put up with a lot. Others have a low threshold of frustration and might not see it as appealing. This isn't about intelligence, but ease and convenience. And anyone that says with a straight face that setting up BTC for even the average MIT student is a simple endeavor is severely underestimating the complexity and risks involved, especially when the alternative is using the established and relatively risk-free system you've grown comfortable and intimately familiar with for years.
Take wallet.
Encrypt wallet.
Put sufficiently complex password on wallet (ie, no dictionary attacks).
Wow, you suddenly have a bank. Feel free to back up that file all you want, hell, if your password is solid you can publish it publically. I wouldn't, since you don't have to, but you still won't password crack it any time soon.