Supposed sword customs: Japan

Joined
Jul 5, 2015
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100
So, in the wild, wonderful world of fantasy that is anime and videogames, something that pops up a lot is badass es wandering around with strips of cloth haphazardly tied around their (usually quite impossible) swords.
http://tvtropes.org/pmwiki/discussion.php?id=zikqo9iqwvzl5p98h86rdz9b
There's a few million examples.
Now, something that page lists is something I've seen repeated many times: that it hearkens back to a tradition of Japanese swordsmen with too-large swords keeping them wrapped up instead of in a sheath.

The trouble is, for all my looking into actual history, I can't find anything that supports this. It seems to be pure nonsense made up by fans. Can any of our katana-centric users help me out, maybe point me towards a source I've missed?
 
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