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Paper wallets are perfectly safe if you know how to use them. Cannot be compared to USB flash drive

No, as a Programmer, Syadmin & Altcoin developer (Viacoin), I am pretty sure that I am correct about this.

Paper wallets are fine like an USB until you want to use your funds, whcih requires you to import your private keys . Encrypting your keys is enough, some malware versions are designed to wait for the inevitable decryption before sweeping your funds.