How do you guys feel about insurance on bitcoin deposits to an exchange?

[josiah__Coinsetter]

Hey all, we recently announced that we now offer insurance on approximately 50% of all bitcoin deposits (free of charge) to Coinsetter and are looking for some feedback on the program.

Please feel free to let us know your thoughts; the opinion of the community is huge when it comes to decision making in the Coinsetter office.

You can read more about the insurance program on our blog here: http://www.coinsetter.com/blog/2014/07/01/coinsetter-bitcoins-now-protected-insured-xapo-vault/

Thanks in advance!

Josiah Hernandez
Business Development | Coinsetter

[RodeoX]

I think there is a market for insured deposits. It is one of the financial services banks can compete on in the bitcoin space. Along with secured storage, insurance offers needed mitigation against the rampant criminality encountered by users. I would expect that fees and profits would be less than fiat currency protection. But arguably it is also a cheaper market to enter.

[Benjig]

but what is the cost? and why only 50%? the exchange should be trusted to put all 100% of your coins without risk, so as the exchange "hacks" continues the people will not trust to leave the coins in the exchange for long time, and the day trade is obstaculized by this, why cant you guarantee 100% of the bitcoins? with cold storage is not virtually impossible a hack?

[desticy]

Deposit insurance?
I think it is unnecessary

[josiah__Coinsetter]

but what is the cost? and why only 50%? the exchange should be trusted to put all 100% of your coins without risk, so as the exchange "hacks" continues the people will not trust to leave the coins in the exchange for long time, and the day trade is obstaculized by this, why cant you guarantee 100% of the bitcoins? with cold storage is not virtually impossible a hack?

We actually cover all costs for our clients. In regards to the 50%, there are numerous reasons behind this. To name one, any funds held in Xapo's insured enterprise vault aren't instantly retrievable, and we want to ensure our ability to process large withdrawals in a timely and predictable manner.

We're also not saying that we only guarantee the safety of 50% of client bitcoins, we're saying that we only insure 50% of client bitcoins. Safety and security are the backbone of our firm, and any bitcoin company in general.

Deposit insurance?
I think it is unnecessary

Understandable, but quite a few Mt. Gox creditors may disagree with you on that one.

[Nrcewker]

must ensure that can withdrawals it.
what exchange do you use now? I use lakebtc and bitstamp, it is very convenient that deposits/withdrawals via ripple.

[josiah__Coinsetter]

must ensure that can withdrawals it.
what exchange do you use now? I use lakebtc and bitstamp, it is very convenient that deposits/withdrawals via ripple.

Coinsetter is usually my exchange of choice.

[hua_hui]

the customers want to 100% security and safely of their fund.  when we are depositing, there are no reasons to deny such good service without charge.

[josiah__Coinsetter]

the customers want to 100% security and safely of their fund.  when we are depositing, there are no reasons to deny such good service without charge.

We agree 100%. Which is why we don't charge for deposits or withdrawals, and offer this insurance package to our users for free.