[2015-04-26] Forex Minute: CoinHako Becomes the First Asian Exchange to...

[chmod755]

CoinHako Becomes the First Asian Exchange to Fully Insure Bitcoin Reserves

http://www.forexminute.com/bitcoin/coinhako-becomes-the-first-asian-exchange-to-fully-insure-bitcoin-reserves-57760

[unamis76]

This is both amazing and bad. It's really cool that these guys have insurance because well, you never know. Even if you have amazing systems and security measures, bad stuff can happen. People can't always be monitoring and securing their systems...

It's also bad, because if an exchange needs to be insured, people aren't really storing their Bitcoins by themselves, and trusting on centralized services and online wallets... And if investors think their Bitcoins are safe because they're insured on an exchange wallet, they aren't really getting Bitcoin, and the fact that people see it as normal to trust their funds to a third party perpetuates wrong ideas about Bitcoin.

Anyways, let's see where this goes, I wish this and all exchanges success...

[1Referee]

What if an exchange with insurance gets hacked when the price is lets say $250. As we all know insurance companies need to investigate every detail before paying out what they think is fair.

What if the investigation takes months, and in these months Bitcoin value goes up to $400. Will they recover just the amount worth in USD at the time of the hack, or will they recover the Bitcoins which means they have to buy back in at much higher price?