Topic: Can Bitcoin insurance ever be a reality? (Read 2728 times)

if they run off with your coin.. your insurer won't exist either. hehe

Though they are at more risk that way

Insurance companies can employ crypto currency specialists to protect their interest, and I have dealt with those specialist earlier when my house was broken into last year.

They will find "small" things not to pay claims ....like :

1. Sorry sir, you anti-virus was not updated at the time....
2. Sorry madam, you should have implemented 2FA on your online wallet....
3. Sorry sir, your webcam was not covered....

They always find ingenius reasons not to pay.... and it's always your fualt. {I once had a claim for damage to my car in a 4 car pile up... I was in the middle... and they denied my claim, because according to them, one of the 4 tyres on my car was too smooth, and not within road traffic regulations.

They will jump on the opportunity.... Bitcoins have many loopholes for them not to pay. 

Insurance is obtainable with a little luck and a team of underwriters willing to undertake a year to handle the due diligence, compliance, checks, balances, controls and procedures to mitigate any activity down to a criminal matter which can be clearly defined and insured against.  This is common place in most systems that manage valuable assets.  There are a few who have navigated the space to bring a higher level of clarity to this new class of product but insuring one's self is a little disingenuous.  It is a process where you must be challenged, doubted and questioned.  Bit Go seems to have done a great job and we commend them!

We couldn't help but say something here, only being the second post of course.  We have been duct taped, blindfolded and hog tied from saying anything but soon we will finally have something to say.  It will be to the dismay of a few and a hooray to the many.

i don't think you can insure your own held btc.  exchanges would be more than happy to charge you a fee (insurance) to pretend to keep your coins safer.

surely bitcoin is safe.  What is not safe are some sites evil intensionados  trying to catch our BTC with cheap advertising.

Today it is now a reality.  Bitcoin insurance provide by BitGo:

https://bitcoinmagazine.com/19382/breaking-news-bitgo-unleashes-fdic-like-insurance-ushering-new-era-bitcoin-security/



Step by step, getting all the infrastructure in place we need.  Lovin' it!!!

What's in it for us ?
A company get's hacked , they got themself insured but would they really give us that?

yes mate.. I dont see it happening as well..lots of scamming possibility.. At least Im not getting involved in one.. Would like to see if it works out though..

I never assumed it was other way than that...

Great question on this topic, i was talking about this a few weeks back in how complex this could be, to insure a decentralize currency like bitcoin we would need some huge fiat backing since most of the people that
talk about insurance of btc are fiat holders trying to invest in btc.

I don;t think that;s too easy to make so, no.

https://bitcointalksearch.org/topic/02-23-2015-fidor-bank-partners-with-bitcoinde-offers-insured-bitcoin-trading-965719

According to that a company is offering insured trading. Insurance isn't such a massive issue and most legit companies will have insurance that covers their own end at least (though not for users 'claiming; their funds got 'hacked'.

Coinbase is insured against employee theft and hacking in an amount that exceeds the average value of online bitcoin it holds at any given time. Specifically, Coinbase's insurance policy would respond in the event that bitcoin stored in Coinbase was lost or stolen as a result of a breach of our physical security, cyber security, or as a result of employee theft.

Coinbase has held this insurance since November 2013 with highly rated carriers (S&P rating of A+ or A.M. Best Rating of A XV or higher).

This insurance policy does not cover damages resulting from a specific user's loss, such as the losses resulting from a compromise of the user's login credentials. Coinbase's insurance also contains standard policy exclusions (e.x. force majeure). Should information regarding this coverage materially change, we’ll update this and other relevant pages in a timely manner.

What type of an insurance you were hoping Coinable and Circle carry? One which covers thousands of users scamming their own accounts?

I don't think bitcoin insurance is even a possiblity , after reading some comments that coinbase and circle provide insurance to the accounts
But then again this guys post cleared my doubt!

https://bitcointalksearch.org/topic/m.10517604

All bitcoins stored in Xapo's Vault are 100% insured, and arguably the only truly insured bitcoin storage in existence, in which you are protected not only from any loss of bitcoin, but protected in the odd chance Xapo itself as a company ever dissolves. We've accomplished this by forming a captive insurance company. Details can be read in our FAQ: support.xapo.com/insurance

New upcoming Bitcoin exchange Gemini is fully insured:

https://blog.gemini.com/welcome-to-gemini/


Your Bitcoin on Gemini exchange will be fully insured in the appropriate US dollar amount.

Long time lurker.. Wouldnt insurance be fairly trivial for bitcoin (for a "savings account", not an account like a "checking account")?

I create an insurance company.

I will insure your bitcoin balance for a specific wallet.

This wallet is 2/3 multisig where I control one private key, you control one.

Insurance stipulates, as long as you follow the procedure (I verify a transaction is legitimate through my own means, could be tedious like 2fa + a phone call to you) then the balance is insured.

If a transaction goes through using this process, the transaction was legitimate regardless of what you say (the transaction that goes through via this method is not insured)

So basically, it would be impossible to "jive" this system.

edit:  to clarify, we agree, both you and I, ahead of time "Ok, I will insure your 100,000 BTC balance as long as we both can agree on a process where we both feel assured that a proper transaction has taken place.  Number one, no more than 1 transaction can occur per day.  An email will be sent to you after every transaction.  An SMS will be sent on any transaction over 10 BTC.  Under 1 BTC requires 2fa.  Anything over 1 btc and it requires 2fa plus I will call you and you answer the secret question.  etc.. etc..."

Although it sounds "heavy", in reality, it is fairly trivial, and not only guarantees your money could never be stolen (moreso than a bank) but I can even give you interest on your "savings" since this process is similar to what we perceive as a savings account at a bank.  Interest would allow for leveraging a small part of your balance which is a whole new process, but again, trivialized at the user level.

I thought they were insured against hacks

I think they just offer insurance against things that may go wrong with the company do to their fault, so your coins may be ensured against the business going bust, but not if you lose your coins yourself.