Can Bitcoin insurance ever be a reality?

[Possum577]

With the risk of hacking being talked about a lot, it's a bit obvious to think what insurance options are available (or could be available) to protect us from our bitcoin being stolen.

It's a big need but so difficult to manage or implement successfully.

If I insured your bitcoin, how could I be sure that you didn't rob yourself to collect on the insurance?

Can bitcoin insurance ever become reality?

[1714572262]

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[1714572262]

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[pedrog]

Bitcoin insurance is a reality, circle.com offers insurance.

elliptic VAULT also offers insurance.

[BittBurger]

You Bitmixer.io signature posters are always so full of questions!   You're always the ones creating new threads.  Im sure its genuine curiosity

-B-

[Possum577]

You Bitmixer.io signature posters are always so full of questions!   You're always the ones creating new threads.  Im sure its genuine curiosity

-B-

It is genuine curiosity, but I only speak for myself. Did you have anything constructive to add to this discussion or question? Or are you trolling for opportunities to harass?

If you think my questions or threads or posts are trivial, noise, trolling, or a nuisance, please do me a favor and let me know.

I participate in a signature ad campaign because it allows me to 1) make some small money, and 2) become more fully immersed in the bitcoin economy. If my comments ever cross the line from constructive I'd appreciate anyone letting me know so I can make changes. I only want to be a constructive participant.

[calci]

I don't see how will it be possible. As the exchanges could just claim to be hacked, by transferring their own coins to one of their own wallet.
And ask for insurance. Now like now, it will be impossible to prove that.

[vm_mpn]

Bitcoin insurance is a reality, circle.com offers insurance.

elliptic VAULT also offers insurance.

So is Coinbase http://blog.coinbase.com/post/95927658922/coinbase-is-insured

[pedrog]

Bitcoin insurance is a reality, circle.com offers insurance.

elliptic VAULT also offers insurance.

So is Coinbase http://blog.coinbase.com/post/95927658922/coinbase-is-insured

Great, another one to the list.

[manselr]

I still dont get how loans and insurances work. Who's going to stop you from not paying? unless you give them all your credentials before or something so they can trace you.

[lyth0s]

I still dont get how loans and insurances work. Who's going to stop you from not paying? unless you give them all your credentials before or something so they can trace you.

As an insurance agency you are a legal entity (at least in the USA). Right now most likely companies like Circle and Coinbase have insurance agencies that will back up their bitcoin assets with cash if they get hacked, in which case coinbase/circle will have to purchase bitcoins with that cash in order to give their customers their coins back.

Insurance agencies also have to purchase insurance from the government so that if for any reason the insurance agency goes bankrupt, then the government fills the insurance claims.

If we go to an all bitcoin system we would have to rely on strong insurance companies with proof of reserves for x% of the stuff that they insure. Even then since we couldn't force them to pay out the bitcoins (because we don't have their private keys) then it would just come down to jail time if they don't pay.

[PaulPierce]

You Bitmixer.io signature posters are always so full of questions!   You're always the ones creating new threads.  Im sure its genuine curiosity

-B-

You can't blame them for it though, it might be helping a fe people

[SargeR33]

Well if its being done, it should be done widely. This would help give peace of mind to potential new users. It would also hopefully deter would-be in house "hackers" since insurance companies are very likely to carry out their own investigations.

[QuestionAuthority]

With insurance and fraud protection we can compete with Visa and MasterCard. Transfer costs will increase accordingly, probably why it costs 2% to use them. The customer will have to pay for any increase in services offered.

[Beliathon]

Can bitcoin insurance ever become reality?

Yes, rather easily. This is programmable money we're talking about. Anything you can dream up can be coded.

[Possum577]

I still dont get how loans and insurances work. Who's going to stop you from not paying? unless you give them all your credentials before or something so they can trace you.

As an insurance agency you are a legal entity (at least in the USA). Right now most likely companies like Circle and Coinbase have insurance agencies that will back up their bitcoin assets with cash if they get hacked, in which case coinbase/circle will have to purchase bitcoins with that cash in order to give their customers their coins back.

Insurance agencies also have to purchase insurance from the government so that if for any reason the insurance agency goes bankrupt, then the government fills the insurance claims.

If we go to an all bitcoin system we would have to rely on strong insurance companies with proof of reserves for x% of the stuff that they insure. Even then since we couldn't force them to pay out the bitcoins (because we don't have their private keys) then it would just come down to jail time if they don't pay.

I think he means, who would it work with Bitcoin, which has no recourse for mistake or fraud transactions and is largely anonymous. Your explanation is the traditional sense of insurance. Reserves and financial ability aside, how would a company insure unaffiliated or cold wallets? Coinbase is an exception because they own every wallet...no Coinbase customer is provided the private key, so the Coinbase isn't actually providing insurance but rather owning every deposit customers give them and promising to pay it out when it's requested.

[maurya78]

Absolutely, insurance is inherently pretty easy to program so btc is a good fit

[Swordsoffreedom]

Bitcoin insurance is a reality, circle.com offers insurance.

elliptic VAULT also offers insurance.

True enough, although circle does fiat side as well so I guess it's not a big problem
Could also add in stripe and square since they both are insured but take bitcoin now
Never heard of elliptic vault but I'll need to check it out (ah did neat https://www.elliptic.co/vault)

[jacktheking]

Hmm.. Bitcoin insurance? Sound great but.. Well.. like you say, how can we make sure the person is not cheating? I mean.. Bitcoin was created with anonymous and privacy in mind. So, it is hard to track whether the 'robber' is the person him/her self.

However, if we have a trade insurance.. it will be better.

[1986]

If I insured your bitcoin, how could I be sure that you didn't rob yourself to collect on the insurance?

This is a big problem and will lead to many people committing this fraud, but remember insurance fraud is also very common in the real world. Many people rob their own houses or lie about the stuff they owned to claim insurance money. It's just something the business has to deal with.

[PenguinFire]

Yes, it is a reality.  I only use buy, sell, and use wallets on services that claim to be insured. 

[bryant.coleman]

No. Bitcoin insurance will never come in to existence. It is too complex. Even if some one tries to come up with an insurance, the premium rates will be prohibitive.