Would you ever consider insuring your bitcoin holdings?

[ohiofarmer]

A UK company called Elliptic Vault is claiming to be the first company in the world to offer insured bitcoin storage.

Bitcoin keys are encrypted and stored offline. There are multiple copies, protected by layers of cryptographic and physical security. The copies are accessible only via a quorum of Elliptic's directors.

The fee is 2% of your coverage level annually. Here's their faq page: https://www.elliptic.co/vault/faq

The part that I find really interesting about it is that their underwriting is done by Lloyd's. If that's not a sign that bitcoin is going mainstream, I don't know what is!

[BadBitcoin (James Sutton)]

A UK company called Elliptic Vault is claiming to be the first company in the world to offer insured bitcoin storage.

Bitcoin keys are encrypted and stored offline. There are multiple copies, protected by layers of cryptographic and physical security. The copies are accessible only via a quorum of Elliptic's directors.

The fee is 2% of your coverage level annually. Here's their faq page: https://www.elliptic.co/vault/faq

The part that I find really interesting about it is that their underwriting is done by Lloyd's. If that's not a sign that bitcoin is going mainstream, I don't know what is!

This completely defeats the monetary purpose of bitcoin. great a large, multi-word password for your wallet. Print off a paper wallet with Armoury, then place your paper wallet in hundreds of places scattered everywhere so you always have access to it in a pinch, nothing more needs to be done.

[smoothrunnings]

A UK company called Elliptic Vault is claiming to be the first company in the world to offer insured bitcoin storage.

Bitcoin keys are encrypted and stored offline. There are multiple copies, protected by layers of cryptographic and physical security. The copies are accessible only via a quorum of Elliptic's directors.

The fee is 2% of your coverage level annually. Here's their faq page: https://www.elliptic.co/vault/faq

The part that I find really interesting about it is that their underwriting is done by Lloyd's. If that's not a sign that bitcoin is going mainstream, I don't know what is!

Go to www.grc.com/password and use one of the randomly generated passwords that Steve Gibson's site generates for your wallet password. Not to worry the password you choose to use never gets randomly generated again.

[HairyMaclairy]

My house, my car, my life, my income, my health are all insured.  

Why wouldn't I want to insure my bitcoins?   I didn't write Armoury.  I have no way of knowing that their seed can be trusted. And some random person's opinion on an Internet forum is unlikely to change that.  

At least I can sue the Lloyd's names.  I sincerely doubt that the creator of Armoury has sufficient assets to cover losses if the program is found to be fatally flawed for some yet to be determined reason.

[notig]

I personally wouldn't but I can see people who might. 2 % seems expensive... If I was going to use them I would try to get the lowest coverage possible.... like 10k or somemthing even if the coins were worth 500k +  and just rely on their good storage.

[HairyMaclairy]

It would be very helpful if someone is able to get a copy of the insurance policy wording so we could look at it. 

[izaa12]

I wouldnt just because i don't want any official entities knowing about my bitcoin holdings.  period

[smoothrunnings]

My house, my car, my life, my income, my health are all insured.  

Why wouldn't I want to insure my bitcoins?   I didn't write Armoury.  I have no way of knowing that their seed can be trusted. And some random person's opinion on an Internet forum is unlikely to change that.  

At least I can sue the Lloyd's names.  I sincerely doubt that the creator of Armoury has sufficient assets to cover losses if the program is found to be fatally flawed for some yet to be determined reason.

Bitcoin I don't think has evolved enough yet to have any "real" insurance for it's own currency. But lets take this back a step, what needs to happen first is the Exchanges need to become more responsible and manage all trades between the buyers and sellers of bitcoin which will help stabilize bitcoin more, this way corporate companies like insurance companies which you have clearly depended on will be happy to provide you with a policy to protect your bitcoins as they will feel more comfortable in dealing in bitcoins knowing that when they exchange their coins for fiat they won't be scammed.

[keithers]

I was wondering when a site like this would come along.  I think it is a great idea.  Gaining the trust of people holding bitcoins would be the toughest part, since insurance on bitcoins is relatively uncharted territory.   The first thing that comes to everyone's mind is that the person or company holding the coins is going to take off with everyone's money...

[BTCisthefuture]

Although I think my bitcoins are fairly safe.... if I had a pretty large amount of bitcoins then yes I would seriously consider getting them insured.

Same thing applies to cash, some people would rather hold it themselves and take their own security measures....other's would rather keep it in the bank of security and insurance reasons.

I think offering insurance on bitcoins is something A LOT of regular every day people would want to do ,  we can sit here and talk about how to make paper wallets and keep things secure etc etc but I think for the average person it's a bit too confusing and they'd much rather pay a small annual fee to know if something ever happened they won't lose their money.

[smoothrunnings]

Although I think my bitcoins are fairly safe.... if I had a pretty large amount of bitcoins then yes I would seriously consider getting them insured.

Same thing applies to cash, some people would rather hold it themselves and take their own security measures....other's would rather keep it in the bank of security and insurance reasons.

I think offering insurance on bitcoins is something A LOT of regular every day people would want to do ,  we can sit here and talk about how to make paper wallets and keep things secure etc etc but I think for the average person it's a bit too confusing and they'd much rather pay a small annual fee to know if something ever happened they won't lose their money.

Sounds like your giving the bansters a way into bitcoin.

[jonanon]

It's a good idea for some although I would never go down this route - kind of defeats the object somewhat.

[Serge]

nice idea, but at 2% annual isn't practical in a long term. 10% for 100 or even 50, or 20 years and they probably would be already having some customers but then it isn't probably practical for them to offer such rates at current valuation of bitcoin. 

[BTCisthefuture]

Although I think my bitcoins are fairly safe.... if I had a pretty large amount of bitcoins then yes I would seriously consider getting them insured.

Same thing applies to cash, some people would rather hold it themselves and take their own security measures....other's would rather keep it in the bank of security and insurance reasons.

I think offering insurance on bitcoins is something A LOT of regular every day people would want to do ,  we can sit here and talk about how to make paper wallets and keep things secure etc etc but I think for the average person it's a bit too confusing and they'd much rather pay a small annual fee to know if something ever happened they won't lose their money.

Sounds like your giving the bansters a way into bitcoin.

Sure and personally I have no problem with that.... here's why.  Even if theres banks or similar things offering insurance on peoples bitcoins or willing to hold them  or making it easier for people to use them (ie a debit card type system)  there is still always the option of people doing transactions or holdings or whatever on their own.

I don't think it has to be one or the other. We can have multiple options for people out there. Maybe people who don't understand bitcoin too much or arent computer savy and find holding their own bitcoins as too insecure can use something like a bank that offers insurance and protections on their bitcoin.  For other people like yourself there is still the P2P aspect of bitcoin and that will never go away.

It's just added options for different types of people out there and allows the adoption and expansion of bitcoin to continue.

[billyjoeallen]

if you insure your bitcoins, you reintroduce the need for third party trust....in THE INSURER!! it completely defeats the purpose. if you can't insure a private key against loss or theft, then you probably don't deserve to have the coins. secure a string of characters.  how in insuring any simpler or safer than securing?  it's madness. Show most people still just don't get how the whole thing works.

[BTCisthefuture]

if you insure your bitcoins, you reintroduce the need for third party trust....in THE INSURER!! it completely defeats the purpose. if you can't insure a private key against loss or theft, then you probably don't deserve to have the coins. secure a string of characters.  how in insuring any simpler or safer than securing?  it's madness. Show most people still just don't get how the whole thing works.

Why does it have to be one or the other though?

Why can't less technical people or as I call them "everyday people"  use a 3rd party system to keep their money safe. While other people choose to hold onto their bitcoins themselves or do transactions without any 3rd parties.

Even if 3rd party systems start to be the norm,  bitcoin is still P2P so you still have the freedom to use it however you want.

[billyjoeallen]

if you insure your bitcoins, you reintroduce the need for third party trust....in THE INSURER!! it completely defeats the purpose. if you can't insure a private key against loss or theft, then you probably don't deserve to have the coins. secure a string of characters.  how in insuring any simpler or safer than securing?  it's madness. Show most people still just don't get how the whole thing works.

Why does it have to be one or the other though?

Why can't less technical people or as I call them "everyday people"  use a 3rd party system to keep their money safe. While other people choose to hold onto their bitcoins themselves or do transactions without any 3rd parties.

Even if 3rd party systems start to be the norm,  bitcoin is still P2P so you still have the freedom to use it however you want.

it doesn't have to be one or the other, but it's only half insurance. Lloyds of London will turn over your coin if they receive a court order to do so. How do you insure against that? Governments are far more efficient at stealing than the private sector.

[Lauda]

if you insure your bitcoins, you reintroduce the need for third party trust....in THE INSURER!! it completely defeats the purpose. if you can't insure a private key against loss or theft, then you probably don't deserve to have the coins. secure a string of characters.  how in insuring any simpler or safer than securing?  it's madness. Show most people still just don't get how the whole thing works.

No it doesn't.
Have fun holding private keys worth a few millions in your house.

[BTCisthefuture]

if you insure your bitcoins, you reintroduce the need for third party trust....in THE INSURER!! it completely defeats the purpose. if you can't insure a private key against loss or theft, then you probably don't deserve to have the coins. secure a string of characters.  how in insuring any simpler or safer than securing?  it's madness. Show most people still just don't get how the whole thing works.

Why does it have to be one or the other though?

Why can't less technical people or as I call them "everyday people"  use a 3rd party system to keep their money safe. While other people choose to hold onto their bitcoins themselves or do transactions without any 3rd parties.

Even if 3rd party systems start to be the norm,  bitcoin is still P2P so you still have the freedom to use it however you want.

it doesn't have to be one or the other, but it's only half insurance. Lloyds of London will turn over your coin if they receive a court order to do so. How do you insure against that? Governments are far more efficient at stealing than the private sector.

That's a whole seperate issue though. If bitcoins were illegal to own then yes you risk having them seized, weither they are in your possession or in the possession of someone holding them for you. Also if bitcoins were illegal then there wont be companies offering insurance on it in the first place.

If it's a case of bitcoins being allowed but a government wants to seize your bitcoins it would likely be because you were doing something illegal. Again having an insurer or not doesn't matter in that situation.  DPR didn't need a 3rd party to hold his bitcoins in order for the FBI to seize them during his arrest.  

If there are places offering insurance and protection on your bitcoins then we are assuming that bitcoins are legal. If they aren't then the issue of insurers is moot anyways.  Also, if you were obtaining bitcoins through illegal acts (selling drugs for instance)  again it wouldn't really matter if you had an insurer or not, law enforcement will still try their best to seize them regardless.

[HairyMaclairy]

If it somehow became public knowledge that you had a piece of paper in your house that was worth $120 million USD how long do you think it would take for your front door to be kicked down by a very determined group of heavily armed bandits?  Or for a group to jump you when you come from the bank safety deposit box?