Topic: Can crypto Insurance be a next big thing? (Read 712 times)
Litecoin, Ripple and Ethereum - according to popular opinion, these are the three main contenders to become the next big cryptocurrency.
insurance is a good thing and possible even with large fee it could be implemented.
but there are several questions and problems that need to be solved, for example, insurance agents usually do some investigations of the case before pay the insurance.
how to do it in decentralized and anonymous crypto world?
also there is question about your crypto origin, cause sometimes we do not have any
but there are several questions and problems that need to be solved, for example, insurance agents usually do some investigations of the case before pay the insurance.
how to do it in decentralized and anonymous crypto world?
also there is question about your crypto origin, cause sometimes we do not have any
In what ways does cryptocurrency insurance work? Is it when you get caught up with a scam? or when you experience losses when trading because of missed analysis? it seems impossible, things related to the internet/virtual completely like cryptocurrency is very risky. I don't think insurance companies will want to provide guarantees for it.
Moreover, cryptocurrency is very complex, synonymous, it's easy if someone wants to manipulate that the wallet has been hacked, right?
Moreover, cryptocurrency is very complex, synonymous, it's easy if someone wants to manipulate that the wallet has been hacked, right?
BTC wallets you personally own which you have the private key is going to be an assurance that you won't be a victim of exchange hacking. Your wallet act as a bank like they've been saying. Why would you need an insurance for that?
There were projects about insurance in crypto but I don't see any of them actually getting much attention, they even become scam later.
That is because cryptocurrency especially bitcoin is decentralized, the holder of control is entirely in our hands. We are the ones who have full responsibility for their safety. So we can conclude that insurance on cryptocurrency is not appropriate, not right on target, not suitable. In fact, as you mentioned, many insurance projects don't even get market attention. There were projects about insurance in crypto but I don't see any of them actually getting much attention, they even become scam later.
Crypto Insurance will add another value in this cryptocurrency world, That's good thinking for the favor of this platform in order to get more flourish of this system, When you want to build a platform then you have to create a proper platform where everything should exist and so risk-taking system will enhance the people's courage, In recent time, a lot of people lost their worth investment in the ICO/IEO, if there was a risk-taker like an insurance agency then those people got some regulatory method and some policies regarding this issue, I think Insurance also may bring a proper environment for doing trading and investment, That's why it will bring a positive change in this platform for sure.
Tent to agree on your statement. Absolutely! That's a very big thing because we all know that bitcoin price is volatile and also many people will be careless on investing or sharing their bitcoin wallet or in trading as well because they know that they are insured and whatever happens there is an insurance in their back so that's not fair to the insurer.
Crypto Insurance will add another value in this cryptocurrency world, That's good thinking for the favor of this platform in order to get more flourish of this system, When you want to build a platform then you have to create a proper platform where everything should exist and so risk-taking system will enhance the people's courage, In recent time, a lot of people lost their worth investment in the ICO/IEO, if there was a risk-taker like an insurance agency then those people got some regulatory method and some policies regarding this issue, I think Insurance also may bring a proper environment for doing trading and investment, That's why it will bring a positive change in this platform for sure.
If this crypto insurance becomes a reality, there will be a lot of conditions that needs to be met before a claim can be awarded. Imagine, someone filing a claim because his 5BTC was stolen, but he took the insurance when BTC was worth $10,000 USD, now that the price of BTC is down, he will just claim that it was stolen and he will be paid more than the current value of BTC. Just take a look at those business that are not earning money anymore, they will just burn down their shop and file a claim.
Indeed, it will be more difficult to claim, and I don't think we will have that crypto insurance, since the price is volatile it will be hard. For now, maybe we should not focus on it, but how can we adopt more people first to join crypto industry, and for businesses to use crypto as their payment options too.
If this crypto insurance becomes a reality, there will be a lot of conditions that needs to be met before a claim can be awarded. Imagine, someone filing a claim because his 5BTC was stolen, but he took the insurance when BTC was worth $10,000 USD, now that the price of BTC is down, he will just claim that it was stolen and he will be paid more than the current value of BTC. Just take a look at those business that are not earning money anymore, they will just burn down their shop and file a claim.
The possibility for such a insurance service is quite a complex thing, because when there is some crime or hack takes place through insurance one can get back the funds. Same time these funds can be send by the respective person to known person and claim it a hack for the insurance funds. Only thing maybe the present insurance firms can accept bitcoin and other cryptocurrencies as premium.
good point, I was thinking about the same too how would the service protect itself from insurance fraud claim
it would be hard to insure bitcoin which has pseudonymous transaction in nature
and by insuring our bitcoin, we surely have to do KYC with the service and lose privacy
when talking about insurance, everything seems to be the opposite of bitcoin principal
BTC wallets you personally own which you have the private key is going to be an assurance that you won't be a victim of exchange hacking. Your wallet act as a bank like they've been saying. Why would you need an insurance for that?
There were projects about insurance in crypto but I don't see any of them actually getting much attention, they even become scam later.
I don't think insurance can be a big thing for cryptocurrencies personally because the company cannot predict what can happen and what can't .. we see 100% loss instantly , it's not something that can be defined by any policy ;the risk factor is too high therefore am not really sure why would a company provide insurance for this ...
Who knows.. ?
It takes to have a big company who will risk their name and their budget to provide this. Maybe when regulations happen there might be a insurer who will do something like this maybe applicable only in their government. It will take a lot of process since insurance companies needs to provide KYC and interviews in anything I wonder what should be insured a wallet or all crypto involved in one owner or in an exchange. It will take time but I hope exchanges provide insurance in hacked accounts if its explainable how it happened. Who knows.. ?
I think so, crypto insurance is the next step to adopting crypto
I don't think insurance can be a big thing for cryptocurrencies personally because the company cannot predict what can happen and what can't .. we see 100% loss instantly , it's not something that can be defined by any policy ;the risk factor is too high therefore am not really sure why would a company provide insurance for this ...
Who knows.. ?
It takes to have a big company who will risk their name and their budget to provide this. Maybe when regulations happen there might be a insurer who will do something like this maybe applicable only in their government. It will take a lot of process since insurance companies needs to provide KYC and interviews in anything I wonder what should be insured a wallet or all crypto involved in one owner or in an exchange. It will take time but I hope exchanges provide insurance in hacked accounts if its explainable how it happened. Who knows.. ?
if I see it now there is no insurance in cryptocurrency to eradicate cryptocurrency hackers then that is the first risk for people who use cryptocurrency as a payment method to buy trading goods and also very risky for investors who invest with other cryptocurrency so that for us cryptocurrency users are very careful careful in maintaining privacy for our own security so there is no hacking.
There is some exchange who has done it recently, such as binance exchange who has gave an insurance to their member when the exchange had hacked a few months back. Yeah, I'll agree with this concept and I believe there will be many people who get an interest to it especially for newcomers.
So as they will comfortable to run each investment that they choose on cryptosphere. Because most cryptoc exchanges are centralized, which is mean there is some party who manage their money and it is not wrong to convey what is desired by the user and the exchange's team must warrant to their wanted.
So as they will comfortable to run each investment that they choose on cryptosphere. Because most cryptoc exchanges are centralized, which is mean there is some party who manage their money and it is not wrong to convey what is desired by the user and the exchange's team must warrant to their wanted.
I am very happy as a bitcoin user, this is a good solution to worry about losing bitcoin and this will make it more convenient for investors to invest more money.
One thing I know for sure that an insurance will get the best out of crypto is the hope that it can provide. Let's take for example, if a person is alive and he/she took a death insurance using cryptocurrency such as bitcoin, whether the value of bitcoin isn't enough whenever he/she dies, the insurance company will just need to wait further time for the value of bitcoin to rise. So, the family of the deceased need not to worry about paying debts. Though, what we should consider the most is having an insurance pertaining to health. Quite weird to plan for our death while we're still alive.
Crypto crime rate has increased significantly. An article in Cointelegraph stated that criminals have stolen around $4.5B worth of digital currency in the first half of 2019 alone.[1]
"The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it." [2]
Exchanges which control most of the trading volume and also act as a storage place for cryptocurrency have become an easy target of hackers. So, could insurance be a promising sector in cryptocurrency or there are drawbacks to it? What could be the challenges for both the insurer and the insured?
[1]https://cointelegraph.com/news/cyber-criminals-netted-43b-from-crypto-related-crime-in-2019-study
[2]https://cointelegraph.com/news/crypto-insurance-a-promising-sector-despite-caution-of-major-players
I personally think that a regulatory commision is a much better option than this insurance companies. A regulatory board with integration to the government to enforce policies and laws regarding crypto, but won't go as far as controlling the market. The market should still be decentralized without control from the government. Their job will only be to distribute permits to operate for companies that want to engage or establish crypto-related projects. "The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it." [2]
Exchanges which control most of the trading volume and also act as a storage place for cryptocurrency have become an easy target of hackers. So, could insurance be a promising sector in cryptocurrency or there are drawbacks to it? What could be the challenges for both the insurer and the insured?
[1]https://cointelegraph.com/news/cyber-criminals-netted-43b-from-crypto-related-crime-in-2019-study
[2]https://cointelegraph.com/news/crypto-insurance-a-promising-sector-despite-caution-of-major-players
I was talking about this thing last month to a friend of mine who is also into cryptocurrency. There is a big need for different cryptocurrency exchanges to apply for insurance so that in case of a successful hacking and other specified misfortune the exchange will have funds to cover what was lost and can assure their customers that the risks are already covered. Of course, the insurer has to laid down the many legal parameters for the insurance like what can be covered and how to make sure that there are no frauds involved. I am not sure if we ordinary holders of cryptocurrency will soon be able to get insurance for our holdings but this is quite possible as insurance business is really all about allying possible risks in the course of doing business and again it is all up to the insurer to set up the guidelines to follow by both parties involved. I am sure that big insurers are already eyeing on how they can do big business in the era of cryptocurrency and digitalization and soon we can see how developments are taking place in this emerging industry.
Also, no buisness would ever be willing to pay out millions in a hack, unless the exchange would be paying huge fees, and the exchange won't want to do that.
Something needs to change for sure though.
I still do not understand how do you plan to execute the said insurance even if it is legally be possible
for it to protect you there must be a legal mechanism in place based on which the companies that insure you work
you cannot create something that is not regulated and have it deal with the finances
thats one thing , lets assume you got all of the licenses and permissions for your insurance business
how do you determine the validity of the claim , the transactions are irreversible , you'd get swamped with fake claims and won't be able to neither return the funds nor find out who stole it
or if it was a theft or it was done to cheat you out of the insurance money by transferring coins to another wallet etc.
who wants insurance services, as a private user, I would reject it. it is the obligation of the exchange market owners to insure their consumer assets. in my opinion, rather than insuring assets, it is better to increase security periodically. because if there is no infrastructure improvement, I'm sure if there is theft the insurance will not cover compensation.
I was talking about this thing last month to a friend of mine who is also into cryptocurrency. There is a big need for different cryptocurrency exchanges to apply for insurance so that in case of a successful hacking and other specified misfortune the exchange will have funds to cover what was lost and can assure their customers that the risks are already covered. Of course, the insurer has to laid down the many legal parameters for the insurance like what can be covered and how to make sure that there are no frauds involved. I am not sure if we ordinary holders of cryptocurrency will soon be able to get insurance for our holdings but this is quite possible as insurance business is really all about allying possible risks in the course of doing business and again it is all up to the insurer to set up the guidelines to follow by both parties involved. I am sure that big insurers are already eyeing on how they can do big business in the era of cryptocurrency and digitalization and soon we can see how developments are taking place in this emerging industry.
Also, no buisness would ever be willing to pay out millions in a hack, unless the exchange would be paying huge fees, and the exchange won't want to do that.
Something needs to change for sure though.
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