Topic: Can crypto Insurance be a next big thing? - page 2. (Read 692 times)
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.
insurance is good in everything which give second thought of chance by give a risk management in place and having your funds save in case of stolen or hack, and that is a new way blockchain need to take step on which i believe will make crypo boom for more adoption .
I don't know, I cannot imagine how would that look like. Is it will just like a bank but online and the involved money is in crypto? Also, there would be many problems in terms of legality since majority of countries still didn't recognized bitcoin and some even are against it. Companies will be also a deciding factor here since some like banks will try to stop it because they see it as a competitor. I don't know.
Insurance companies make their insurance policies based on risk evualtion,
They have people who work on mathematical models and try to get as much information about the cases when they have to pay out.
I doubt that there is enough information for insurance companies to use for their analytics to justify their policies and cost of insurance. Also they crypto value chnages all the time, how would they include that in their policy..
They have people who work on mathematical models and try to get as much information about the cases when they have to pay out.
I doubt that there is enough information for insurance companies to use for their analytics to justify their policies and cost of insurance. Also they crypto value chnages all the time, how would they include that in their policy..
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.
To tell the truth, I loved the 'crypto insurance' idea. Insuring cryptos we all own will secure our digital money and we will be more relieved when our crypto is gone. But of course, there will be limitations and insurance policy won't recover our digital money for all reasons.
Of course! I think everybody wants their funds being safe all the time! and in fact, I think even users of large exchanges such Binance and Coinbase had in one way the other been benefiting from insurance policies acquired by both of these entities. Aside from a regular insurance, Binance did another wonderful program to further safeguard its customers funds with Binance SAFU to augment the coverage of its regular insurance policies.
In this aspect, I think we can deduce that our funds are more safer in these two exchanges compared to others who don't have yet insurance coverage and most people value this kinds of things that would most likely give them peace of mind regarding their funds security with custodial wallets as with the case of exchanges.
With the increasing number of hacking victims and the number of people with huge losses because of volatility it is really tempting to avail of crypto insurance. But insurance companies in reality are also avoiding huge risk since cryptocurrency really is very risky I guess the insurance companies will not enter into this business. But if it will really occur that a certain insurance company will be dealing with crypto then it will be a big hit especially for big traders and exchanges.
It's difficult to insure an asset that isn't really real in terms of actually being able to see it or feel it. I think this is the problem with crypto and what people perceive of it. If they cant see it, they won't trust it. My opinion anyway. I am all for it, but this is how I think other people would perceive it.
What do you mean they can't see it, we all can see it, we can see the transaction hash the funds and the balance, even if it is online it still has an entity, but I agree there should be guidelines when it comes to insuring a Cryptocurrency or a third party insurer besides being insured by the exchange, but if I am a company I have to check my option if I can really ensure that large amount somethings hackers are hacking millions of dollars 
It might be worth considering the storage and insurance of crypto in ration to gold. This company offers a service for gold investors. You will see that it requires the owner to deposit his gold in their vaults.
https://www.bullionrock.com/bullion-guide/storage-and-insurance
Similar services are being created at the moment for funds that have over $1,000,000 in Bitcoin, but they require the owner to leave the coins in the insurer's wallet. This will reduce the use of Bitcoin for daily transaction, and transfers the real ownership of the coins away from the investor.
https://www.bullionrock.com/bullion-guide/storage-and-insurance
Similar services are being created at the moment for funds that have over $1,000,000 in Bitcoin, but they require the owner to leave the coins in the insurer's wallet. This will reduce the use of Bitcoin for daily transaction, and transfers the real ownership of the coins away from the investor.
It's difficult to insure an asset that isn't really real in terms of actually being able to see it or feel it. I think this is the problem with crypto and what people perceive of it. If they cant see it, they won't trust it. My opinion anyway. I am all for it, but this is how I think other people would perceive it.
That's pretty accurate to what's happening, it's really hard to secure crypto assets because it's a lot different to a car or a house, where it'll be pretty easy to find out if it burnt down by the owner for insurance, whilst you can easily fake getting hacked online.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
"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 doubt it when it comes to hosted wallets. Bitcoin is based on the notion of decentralisation, and even with insurance, I doubt that people would trust online hosted wallets for that exact reason - it takes away from the decentralised nature of bitcoin wallets.
Thus, I don't think that such an insurance product for depositor balances would ever take off. I doubt that there would be a lot of providers for the insurance either since there is no guarantee that the service itself wouldn't go rogue and fake a hack to claim insurance money, etc. with the untraceability of the blockchain.
When it comes to price hedges, though, such a product could be mainstream. But then, you've already got perpetual futures and options that people can buy on the derivatives market to insure themselves against adverse price movements.
There are much insurance for cryptocurrency that are coming up today, because of so many scams and hacking events I think insurance has a vital rule in the industry of btc and altcoins. The challenge for the insurer is the absence of past information and data, that is one of problem that the insurer hard to figure it out. Few percentage of crypto trading and exchanges are insured today, still a lot more crypto businesses are not. When trading industry will think about the instability of the cryptocurencies ecosystem then they should put their coins insured. That is why insurance in cryptocurrency is one big craze.
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
"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
looking at the current state of the crypto space, crypto insurance can not really make any significant change or reduce crypto crime. It will be very difficult for an insurance project or platform to restore stolen cryptocurrencies. most of these situation involve huge amount of funds being stolen and restore or repaying back such funds is not gonna be easy. The best thing that can be done to reduce crypto crime is an improvement of the security nature of exchange platforms and crypto wallet..
Well, you have a point there but I don't think you really understand the point and suggestion of this post. This post was to find out if having crypto insurance projects in the crypto space will be the next big project. You should recheck the post and try to get what the post meant..
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
"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
That's possible but the company that's going to set up this must first do a feasibility study if the business that they are going to set up, will give them assurance that they will no go out of business, because of the to many hacking that are going on, the exchange should be the one to insure traders funds, in my opinion we don't need this, the responsibility should be on the exchange.
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
"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 doubt it when it comes to hosted wallets. Bitcoin is based on the notion of decentralisation, and even with insurance, I doubt that people would trust online hosted wallets for that exact reason - it takes away from the decentralised nature of bitcoin wallets.
Thus, I don't think that such an insurance product for depositor balances would ever take off. I doubt that there would be a lot of providers for the insurance either since there is no guarantee that the service itself wouldn't go rogue and fake a hack to claim insurance money, etc. with the untraceability of the blockchain.
When it comes to price hedges, though, such a product could be mainstream. But then, you've already got perpetual futures and options that people can buy on the derivatives market to insure themselves against adverse price movements.
To tell the truth, I loved the 'crypto insurance' idea. Insuring cryptos we all own will secure our digital money and we will be more relieved when our crypto is gone. But of course, there will be limitations and insurance policy won't recover our digital money for all reasons.
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
You would need some form of contract, both digital and physical, that could prevent the one asking for insurance from running away. Also, a program that could serve as a contract where if one party fails to follow the details of the contract, penalties would be applied to that fellows account. Now solving the loopholes would be very difficult since multiple wallet could be made and a huge factor people could take advantage of. Just the fact that users are can be made anonymous or users can create new wallets, implementing the insurance system could be very difficult. "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
Having insurance means having the government in control since insurance companies work under the government. Then the government having control means bitcoin being centralized and they will make a step in order for bitcoin to be controlled by them so I strongly disagree and oppose that insurance can be a big thing in bitcoin.
We will not see bitcoin will grow fast if the insurance companies work under the government because the government will prevent the spreading of bitcoin in public. Perhaps, after the government controls the insurance, the government will make a regulation to the crypto user so they can register the existence of themselves in the insurance companies to the government can watch them. But perhaps, the insurance can bring something new to the crypto world, so many people will know more about crypto, and they don't feel afraid to invest in crypto.
The Exchanges will also give less attention to software exploits, because they would rely on the insurance to cover their losses, when exploits are found.
I believe being insured will be good for most of the community since I understand exchanges will be forced to harden up their security mechanisms or maybe required to pass a security audit and comply other relevant requirements first before any insurance firm will consider them as insurable which in effect would make these exchanges much more secure in their ability to hold external funds coming from its customers.
Aside from that, once insured, these exchanges will continue to observe and implement utmost security upon their platform without being reliant on insurance because they don't want their platform being compromised since they could loose customers, credibility, and more money! and if it happens , I think it will incur much more damages than the total amount of insurance premiums they will be required to pay.
Having insurance means having the government in control since insurance companies work under the government. Then the government having control means bitcoin being centralized and they will make a step in order for bitcoin to be controlled by them so I strongly disagree and oppose that insurance can be a big thing in bitcoin.
I am not interesting with insurance because only get less effect for us, we save money every month but when service still less and bad we got with many insurance company.
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