Don't forget the most important thing is people have to hold their coins in non custodial wallet, if they hold in centralized exchange, they might suffer the same. But, they might have a problem when they want to cash out because many exchanges like to freeze or refuse coins from rival countries.

I don't think the first and second are make sense because Muslim countries already hate Israel since they were in their moms' belly.
For the third conspiracy, it might be possible.

It's not like I am anti-Bitcoin or something like that. I like Bitcoin a lot for privacy reasons. I love Bitcoin as an investment, and I like to pay using Bitcoin whenever I can. That does not mean we don't need banks anymore. In most places, you won't be able to pay using Bitcoin. You still need banks to do daily transactions. But it is not ideal to say Bitcoin will replace the banks.

I often see Bitcoin maximalist says this and that, but honestly, I think this is dumb. Of course, Bitcoin can help people, but not as much as banks. At least not yet. Bitcoin has a long way to go.

They're all vulnerable, centralized platforms, I hope the hackers don't attack centralized bitcoin exchanges, that's always one of the well known vehicle to a bear season. However, Iran is in a bad shape in this war, for losing out data this way, Isreal would use it against them to attain more information on who to strike next. Over the period Israeli military are more focused on neutralizing key Iranian personnels, all that breached data only works to make things easier for them.

Sorry if this question sounds noob but I want to really understand something, by the hackers claiming they have destroyed the said banks data, does this simply mean that the bank has lost data of all her customers? That is they have lost all the account details and account balances of all her customers respectively?

If the answer to the above question is yes, then its very bad, absolutely very bad and I and pray the said bank do have some form or kind of backup somewhere that is securely kept, otherwise, I really will pity the customers who would be in serious potential loss of money as a result of ongoing war..

This indeed is a good lesson to us all that even though exchanges can be hacked like banks, saving in bitcoin and keeping safe in one's private wallet is the best way to secure money.

Till this minute, I'm yet to read an article or post from any Bitcoin critics on whether banks should be trusted with people's money. But when it comes to Bitcoin dropping in price, or in a case where a Cex falls victim to hacks, the entire world won't be at peace, as there would be more than 1,000 reasons to label these things as vulnerable. Okay, let's assume that the war ends today, what will this same bank in Iran tell their customers?.

The problem now is not even the asset or valuable being stored.
The problem is literally the medium/choice of storage. There are vulnerabilities everywhere I guess, but at least self custody with extra care and caution is safer to some extent.

Well, I don't have much to say. At the end of the day, I will still recommend self custody. I hope those whose data has been lost won't get stepped on, because I can't even ascertain how they will identify people's last balances before the hack, except there is a backup somewhere.

Is a data breach a convincing reason for people to move to Bitcoin? I doubt it.

We know how many exchanges were hacked and even Coinbase get into that situation very recently, which is one that has never been hacked before so the data in general on the internet will be unsafe.

People will keep using centralized banks as long as they need a loan to buy a car, a house, etc...

Because it is dumb. Those who claim that Bitcoin is capable of replacing fiat currencies are hallucinating. That wasn't Bitcoin's intended purpose either. Anyway, to return to the subject of this topic, provided that what has been mentioned is true, it's extremely concerning to see such news and makes you wonder what kind of safety protocols financial institutions use that hold our money. It's all digital now; this money doesn't actually exist; it's just numbers. I'm hoping they manage to recover everything so people won't suffer any losses.

Keep in mind that the same rule applies in any kind of financial institution, such as exchanges; nowhere is safe unless you're using a decentralized wallet. This is where Bitcoin's true nature shines.

A data breach is when someone gets access to customers' confidential information. What we're talking about here is more than that. If the hackers' claims were true, they wiped out the data from the bank, making it impossible for them to carry on with any operations, at least until they restore it with a backup (if any).

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Another example of how useless the banks can be is a video of a UK customer being denied withdrawal of £2,500 in cash. You can't make this stuff up:
https://www.reddit.com/r/Bitcoin/comments/1jjhcq9/a_man_in_the_uk_was_blocked_from_withdrawing_2500/

I am a pro-bitcoinist, that is something I want to make it clear.

Now let's see from different perspective, data from a bank can be accessed and wiped out completely which has some benefits like it just erase all the balance from corrupted rich people and erase the loan for the poor people to give a fresh start if that can be a reason I would want the banking system to exist and someone who is fed up with the rigged money system decided to do that.

Any centralized entity has a risk of being cracked open and be checked off by hackers - the question is only when, and the probabilities are small, but they are never at zero.

So, I definitely agree.