Can bitcoin get an insurance?

[erikoy]

Bitcoin as an asset or property is like also having a real property or a car that usually needing insurance to cover expenses whenever nad things occur for that property.

Bitcoin was created as decentralized digital currency, but also consider as an asset. Bitcoin is sometimes vulnerable like getting stolen from phishing sites, hacking and scamming other people is a  form of damage to bitcoin.

Is there any chance that bitcoin can have an insurance from its vulnerabilities in the future?

What do yoi think?

[Upgrade00]

Bitcoin is sometimes vulnerable like getting stolen from phishing sites, hacking and scamming other people is a  form of damage to bitcoin.

Is there any chance that bitcoin can have an insurance from its vulnerabilities in the future?

All those situations you listed are not vulnerabilities of Bitcoin but rather a result of the actions of the person holding them.
Bitcoin as a decentralized asset can not be insured directly, as this would have to be handled by a central authority with a sort of reserve put in place. Some large centralized exchanges offer insurance in cases of hacks, but storing your assets on a custodial wallet is not advisable, as you do not truly own them.

Autonomy of your funds also comes with the responsibility to use the safest practice to protect it.
To avoid falling victim to phishing sites or hacks store your bitcoins on a hardware wallet or an airgapped device which would never go online. To avoid scams; never send bitcoins (expecting to have it multiplied) or your private keys to anyone, for any reason.

[BlackHatCoiner]

How exactly would an insurance like that work? On bitcoin, you can keep your funds or lose them. Nothing in between. It's pretty simple, not like car and house insurance that many different things may occur. Also, why would you need one in the first place? Do you find it difficult to protect your coins?

P.S, anyone wanting a bitcoin insurance wouldn't be wanted from the insurance.

[sheenshane]

Bitcoin was created as decentralized digital currency..

This, you already answered your question in the bolded part above.

Bitcoin is decentralized and there's no need to back up any third parties such as to have insurance.  Our responsibility is to take care of our private key privately because I believed in the old saying. "Your key, Your cryptocurrency".  Speaking of vulnerabilities, that's the problem of having Bitcoin if they didn't know how this works.  Learn first how Bitcoin technology stuff works before they accept and hold for future purposes.

That's impossible and beware of such services that offer Bitcoin insurance.  I heard this so many times that there's a centralized service offer life insurance plan and they will hold your Bitcoin.

[concept2]

There will be no insurance for bitcoin since it is decnetralized, unless you use bitcoin from another plaform. Some exchange do pay you back the amount of money if they are accidentially hacked

But will you give the ability to manage your asset to someone else. The point of using bitcoin is to be free from anything that try to involve in our life such as government, companies, banks, etc. Therefore, you need to be responsible for your money. If you want an insurance, just invest your money in some crypto firms. Their contract might protect you from being deceived

[Broke@$$Joe]

Bitcoin is sometimes vulnerable like getting stolen from phishing sites, hacking and scamming other people is a  form of damage to bitcoin.

Is there any chance that bitcoin can have an insurance from its vulnerabilities in the future?

All those situations you listed are not vulnerabilities of Bitcoin but rather a result of the actions of the person holding them.


- Exactly
*Be your own Bank

[Casdinyard]

Insurance are given to things which are centralised, and that is enough I think to explain. But to further elaborate, insurance is a product of regulation from a third party. Given the decentralisation in its nature, as we are all aware of it is quite impossible.

Is there any chance that bitcoin can have an insurance from its vulnerabilities in the future?

Bitcoin will only be vulnerable if you will mistakenly send it to other wallet for no reason, and also vulnerable if you lost your private keys. If you will observe these two are mistakes being made by the investor or user, therefore they take full responsibility of their holdings, with no one to blame if something bad will happen.

[DdmrDdmr]

<…>

I just Googled “Bitcoin Insurance” and got a few results on existing BTC insurance. They are not wide spread, and delimit the scope rather narrowly as one would expect, but it’s not quite uncharted waters.

Corporations such as Exchanges tend to have insurances of some sort (up to a certain capped amount), and some seemingly have resorted to them when they were hacked, in order to cover the event. A large hack would probably meet the maximums easily and leave the Exchange tits-up trying to recover.

I came across one that covers individuals (there seem to be some timid attempts), and it goes on about insuring your BTCs (and other alts), stating that it covers stuff like loss of wallet keys, proven hacks by means of brute force, cyber attacks, phishing, trojans amongst others. The catch is that it will only cover you if you use a specific wallet (and probably a ton of clauses).
See: https://www.coincover.com/theft/bitcoin-insurance

None will probably cover sending BTCs to the wrong address.

[Twentyonepaylots]

How it can be insured if the price is uncertain? People be making digital currencies as an asset and think of insurance is absurd. Although it was compared to gold almost every time, there this gap or the difference that makes bitcoin very far from gold or any physical asset. Plus given the decentralization? Whom will you ask for insurance? Is there any company that gives bitcoin insurance? I don't know if that will work accordingly tho.

[mahilchii]

Insuring crypto is also high risky and has some similarities with insuring cash, coin base one of the biggest crypto exchanges carries insurance for crypto and it's clients. If you can't rely on an exchange to cover BTC you can take Matters in your own hand's.

[VivGaming]

I don't think this is going to happen in case of cryptocurrency because its nature is too violate and its all about just win or lost so I am feeling this is going to be nothing serious issue for bitcoin because its all about just indepented and insurance mean you are going to give data to others which is against rules of crypto and bitcoin.

[hatshepsut93]

I came across one that covers individuals (there seem to be some timid attempts), and it goes on about insuring your BTCs (and other alts), stating that it covers stuff like loss of wallet keys, proven hacks by means of brute force, cyber attacks, phishing, trojans amongst others. The catch is that it will only cover you if you use a specific wallet (and probably a ton of clauses).
See: https://www.coincover.com/theft/bitcoin-insurance

This makes sense, because it would be so easy to just send coins to a new address and then claim that you was hacked. You would need to mix the coins to avoid any potential insurance fraud investigation, but still it's much easier to execute than real-world insurance fraud with things like cars or real estate.

[mindrust]

Bitcoin as an asset or property is like also having a real property or a car that usually needing insurance to cover expenses whenever nad things occur for that property.

Bitcoin was created as decentralized digital currency, but also consider as an asset. Bitcoin is sometimes vulnerable like getting stolen from phishing sites, hacking and scamming other people is a  form of damage to bitcoin.

Is there any chance that bitcoin can have an insurance from its vulnerabilities in the future?

What do yoi think?

I don't think any company would provide insurance for crypto assets because they are too volatile.

Maybe if the insurance company invests in crypto then there is a possibility but the volatility is still a problem. Nobody would take that kind of risk.

[imstillthebest]

not sometimes but bitcoin is expose to attacks at all times . this can damage the reputation of btc but btc itself cant be damaged or tear down like a car . if we are a victim of atacks we can loose our coin and we can also loose our coin not because of attacks but because of the volatility of bitcoin or when its price go down so having an insurance is still a good idea but that can only be possible if you invest btc on a centralized institution and they control your funds . did they came up with that idea already ?

[rijaljun]

I don't quite sure about it. Have you considered the Bitcoin's volatility just like what you have said it's decentralized and anytime it would crash more than what you can imagine. I don't think the insurance company would like something like that since I really think their business will be at great risk for that.

[kamadazje]

That's great idea but I don't really think some companies will be created just for Bitcoin insurance you can easily tell they you were scammed, hacked, etc. but that's not like in physical world it's really hard to track down if you were really get attacked by scammers or not.

[verita1]

OP's thinking is given as to insure the assets that we know. The idea is not so far fetched. It may be the case that a business has the mission of creating insurance policies to insure Bitcoin as an asset. For example, if a Bitcoin owner wishes to leave it as an inheritance, he can sign a contract for his heir to claim it.

[BALIK]

P.S, anyone wanting a bitcoin insurance wouldn't be wanted from the insurance.

I agree. The insurance won't help for most of the common issues that lose people money. Nobody is going to take the risk for it.

Additionally, an insurance often helps mitigate the risks when there're more parties involved but in the case of BTC the power lies solely with you, the key keeper.

So, while it may sound appealing to encourage an insurance type system on BTC in reality that's not practical or profitable.

[goinmerry]

OP's thinking is given as to insure the assets that we know. The idea is not so far fetched. It may be the case that a business has the mission of creating insurance policies to insure Bitcoin as an asset. For example, if a Bitcoin owner wishes to leave it as an inheritance, he can sign a contract for his heir to claim it.

If that's the case then just signed legally a formal contract or document with the attorney stating the exact number or amount of bitcoin that should be claimed by whoever it will be assigned to.

It's like the usual will and testament and Bitcoin will just be added in the formal contract.

Bitcoin can't get insurance as aside from being decentralized, there is no general specification that it was considered as an asset by its users.

[adzino]

Bitcoin as an asset or property is like also having a real property or a car that usually needing insurance to cover expenses whenever nad things occur for that property.

Bitcoin was created as decentralized digital currency, but also consider as an asset. Bitcoin is sometimes vulnerable like getting stolen from phishing sites, hacking and scamming other people is a  form of damage to bitcoin.

Is there any chance that bitcoin can have an insurance from its vulnerabilities in the future?

What do yoi think?

I highly doubt any insurance company would cover someone's loss due to getting phished, hacked or scammed. Oh and one thing, those are not bitcoins vulnerability. Those are peoples stupidity for falling for those scamming, phishing and hacking. People should be careful when surfing the web and must make sure they are know where they are going. They should also make sure that their computer is secure. Instead of saying bitcoin is sometimes vulnerable, you should be saying people are sometimes vulnerable and naive.
But yeah, no insurance is going to cover those. There are some insurance that do cover online frauds and scams (but rarely), but when it comes to bitcoin, they won't. First of all, its going to be hard for them to proof if they really got scammed or is trying to claim through insurance fraud.