Bitcoin and other cryptocurrencies are getting famous for alternate payment methods and assets. Since these currencies are entirely digital and the market value keeps varying, the insurance coverage for the loss and theft of the cryptocurrencies becomes a challenge and also an opportunity. Although there are many solutions that exchanges offer still a potential backup plan never hurts.
Let’s see what all do you need to know about Bitcoin Insurance.
- The Bitcoin Insurance provider must consider the risks in providing leverage. And as a Bitcoin user, one should consider the coverage plan offered by different companies before selecting. For Example, Few Insurance would cover only the transactions and not the events occurring after the transactions. And most of the things do happen after the transactions. So ideally the insurance provider should offer the cover for transactions, the after effects if at all something unfortunate to happen and the storage of the Bitcoin wallets.
- Bitcoin is being valued as high valued property similar to silver or jewellery. These days few of homeowner’s insurance company cover this. You may be out of luck if the homeowner’s company refuse to cover, but you could take legal action in that case. Courts and insurance providers are still working on these on how to handle the claims associated with the Bitcoins.
- The rate of bitcoin investing will be an essential aspect of the success of Bitcoin insurance. Bitcoin entities only control 40% of the market, and hence it is an easy target for the criminals. And thus successful investors always keep their identities anonymous. Therefore, high net worth individuals need specialised insurance cover.
- The insurance will help the users to recover from the thefts. The wallets do offer certain security and privacy, but wallets has been hacked in the past. Usually, cryptocurrency thefts typically go unnoticed and sometimes the users experiencing such situations are not aware of how to proceed with the same. Luckily these insurances are exploring and willing to provide solutions for the thefts.
However, the insurance premiums are pretty high, and all the companies are coming up with more practical solutions. Statistically, with the growing bitcoin market, bitcoin insurance might become a legal requirement in the future. So anyone who is buying the coins and no matter what process of buying is, it is very important to learn all the details of the potential plan before going for it.