Can crypto Insurance be a next big thing?

[nh0xxpr01]

It's a great read btw

[Expecto]

Crypto insurance can be a very effective formula for people whose crypto money is robbed. But there should be some criteria for insurance of course. If there is not limitations, crypto insurance company or insurer will have hard times.

[veleten]

I don't think crypto insurance is going to be a big thing any time soon
simply because of the fact that crypto doesn't have legal status in many countries and in many countries you would have hard time explaining what happened to the local police
then there is this problem of tracing and recovering the stolen assets , the transactions are irreversible and if the funds are stolen , in most cases they are gone
insurance companies know their risks and their analysts are top notch , so I highly doubt they would want to take on this market just yet
maybe in the future ,in 5-10 years time when the legal aspects are established and bitcoin and other cryptocurrencies have their legal status we could see some crypto insurance companies appear
but at the moment it is too early

[Sadlife]

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

yeah surely is that insurance is what cryptonians need to assure their assets to be secured and safe

but what if the insurance itself is the scammers/hackers?around the world cases about insurance company is really alarming,many of them that supposed to help the people are the one who victimizes them
maybe this is another arguments to tackle before gathering support but for now we must find a strong and reliable one

[Kyraishi]

There shouldn't be a need for insurance in crypto, especially when we are trusting exchanges with millions of dollars worth of assets. They should be the ones that make sure our funds are safe from hackers, and it's not fair for us to need to pay insurance on our own funds.

It'll be very hard to implement such a thing as well -  how would companies insure someone getting hacked, how much would you pay and how would you even prove you got hacked in the first place? There are too many questions for this to work.

[carlisle1]

can someone share about insurance that existing and reliable to use?those been here for long and has many users already
from so many scamming and hacking that happened lately it is very alarming that one day our exchange is the next victim.no matter how secured they are but this hackers are more advance and knowledgeable to take down their target and we cannot deny the fact that the last victims are bigger exchange

willing to have one as my holdings are getting high and im afraid of losing

but this may a good initiative for the investors to create insurance company that legit and can be trusted and must be owned by popular team in this community

[cryptozink]

The premiums and restrictions will make crypto insurance usless

[BlackFor3st]

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

It could be the best solution for the exchanges especially if they will get hack then they can still continue their operation as they are insured but I am not that sure if someone is willing to launch a crypto insurance.

Being insured is the best option for the exchange to continue without worrying anything even if they will get hacked but in crypto world, everything is possible like the exchange will create an inside job just to get the insurance. So I am wondering, what will be the counter of the insurance company if they are going to step into crypto insurance.

[akar87]

Using cryptocurrency as your insurance is better because your money will increase if bitcoin price higher one day, but did you see how many insurance companies have bankrupt they cannot pay claim by their member and there are use money, but how come if your insurance using bitcoin and price increase higher next time?

[lobat999]

I think insurance policies could be the next big thing in crypto space but I doubt it will ever attract the attention of most ordinary users who often holds less than 1 BTC at a time. Aside from that, I assume it is generally targeted only to big players into the crypto industry like exchanges, crypto projects who holds large value of crypto, etc.

I believe its one of the good things that happened in the industry, giving more sense of security and assurances and it could enable more players to adopt cryptocurrency by minimizing risks  associated with hodling crypto which are often one of the reasons why most investors don't want to partake or be part of this industry.

[Kakmakr]

Crypto insurance is going to create more problems for exchanges, because that cost must come from somewhere and usually those extra overheads will have to be generated from higher fees to their customers. 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.

Most insurance will also not cover all the losses, so the victims of these hacks would not get all their money back, when someone hack these services and insurance is very expensive, so they will not take cover for large amounts.  

[timerland]

can someone share about insurance that existing and reliable to use?those been here for long and has many users already
from so many scamming and hacking that happened lately it is very alarming that one day our exchange is the next victim.no matter how secured they are but this hackers are more advance and knowledgeable to take down their target and we cannot deny the fact that the last victims are bigger exchange

willing to have one as my holdings are getting high and im afraid of losing

but this may a good initiative for the investors to create insurance company that legit and can be trusted and must be owned by popular team in this community

There hasn't been any services that are in the insurance business actually, and it's for a pretty good reason why - it's too hard to do such a thing.

There are so many questions to answer when it comes to online insurance, mostly because of how easy it is to fake stuff online. Here's an example.

1. How do you know it was a real loss of funds?
2. How much would you pay for this?
3. Who would be paying for this?
4. What if someone loses millions, will you have enough money to pay for it?

[tetyulfania]

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.

[Astvile]

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.

[lobat999]

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.

[maydna]

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.

[Wexnident]

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.

[Distraction]

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.

[magneto]

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

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.

[judeafante]

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

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.