InsuredCoin.com - A platform to insure BitCoin transactions

[muftimoh]

Alright, so here's what I've got:

http://www.insuredcoin.com/

This is my first tech-related venture and I was wondering if I could get input from some of the vets.

I adopted BitCoin early on and used it (mostly for digital goods). After the insane speculation that's recently hit it, I'm really just holding nowadays. But I do believe BTC has a future where it's primary purpose will return to being a cyber-currency that people use for more than CE.

Anyways, one of the major problems with using BTC has been a lack of protection for your BTC. You don't know how your BTC are being handled by the other party, there are no third party audits or an en-forcible security standard. When companies go under (i.e. Silk Road, GBSE) or when their assets are frozen (MtGox), many people end up losing BTC they left with the host. Likewise, everybody knows about some of the major thefts/scams as well as the purely stupid executive failures.

The idea here is to have a pool of BTC that is used to (a) ensure that businesses that get on board adhere to particular security standards and (b) insure BTC used in transactions with said companies. I don't know if this falls under your typical startup since I want to move in the 501 (3) (c) direction once I can afford modest legal fees (or find a pro-bono lawyer). But that's the gist of it (more details on the site itself - the idea isn't 100% fleshed out yet).

Any help with finding some direction, resources or simple critique much appreciated.

[Bitlend]

Hi muftimoh

You certainly are correct here with the issues regarding bitcoin and the need to have some for of insurance available.

From reading your site briefly, it seems you are leaning towards the insuring of the businesses that operate using bitcoin.

Im sure by doing so, it would provide the knock-on effect of less individual losses too, when the business they are providing bitcoins too would be somewhat safer (insured)....perhaps an "insured" sign for the site.

The model definitely needs consideration further, the issues will be how to interpret a proposed clients business acumen and stability/ security measures to enable an insurance premium to be set.

You stated that the companys that are insured would need to limit their hold of BTC to the insured amount (or then would not be insured obviously) as they have breached their limit.

I guess the insured could add insurance as their business grows, as ultimately with insurance one would hope those insured would grow and prosper (require higher insurance) due to their expansion (accepting more customer/ using more BTC through their business).

I have some ideas too, but I think you have put together a good starting point.

Raising of enough BTC/ liquidity is also the sisue, but could be addressed over time.

From small things, big things grow as they say.

Having a relevant financial background, this would certainly be something I would like to discuss further.

Nice start, wish you well and if you like to chat further please feel free to post or PM.

Cheers.