When we talk of financial security and investments, insurance will always be part of the topic since this will help you secure your future. In fact, you might even think of getting life insurance for you and your family, or probably you already own a car insurance if you have purchased your car. There are different types of insurance, and you should get the ones that you genuinely need. But have you heard of a Bitcoin insurance?
Well, if you are a cryptocurrency enthusiast, you probably heard of it. However, it’s possible that you haven’t thought of getting one, especially that you are not yet fully equipped with knowledge about it.
What is a Bitcoin Insurance
Bitcoin is a cryptocurrency released in 2009 by someone with an alias, Satoshi Nakamoto. This digital currency can be used to buy or sell items online from people and companies that utilize Bitcoin as payment. Through time, Bitcoin has increased its value, which attracted more users.
Since there is a significant growth in the number of Bitcoin users and its value is increasing, some hackers are targeting it. It is said that some entities are trying to hack Bitcoin wallets so they can acquire its contents. This possibility gave birth to the idea of creating a Bitcoin insurance so that cryptocurrency users will be secured.
Bitcoin insurance also resembles traditional forms of insurance coverage. Before getting one, it is vital that you know everything about it since it is a crucial decision to make.
What You Need to Know About Bitcoin Insurance
Many are not familiar with Bitcoin insurance. With that, it is necessary to pay attention to every detail so you can make a sound decision if you’ll acquire it or not. If you have an existing insurer, try to inquire if they offer this type of insurance so that you don’t have to search for a new company.
Look for trusted individuals and companies who may offer cryptocurrency insurance and compare them at EINSURANCE. This way, you will be able to weigh the details while considering all aspects. So before you get one, here are some things that you should learn:
- Varied Insurance Coverage
The insurance coverage of every company differs from one another. Hence, it would be best if you learn what is included in your plan by carefully reading and understanding it. Some only cover transactions and do not include possible storage hacks and other related mishaps.
An ideal Bitcoin insurance covers both the transactions and the storage of your Bitcoins. Consider coverage limits, especially if you have a significant cryptocurrency investment, or you intend to increase your investments.
- Theft Coverage
Although there are Bitcoin wallets where you can store your investments, there’s still no guarantee that it is secure. Bitcoin thefts and hackers are everywhere. Since this is a digital currency, it is often hard to trace where the issue came from. For this reason, most cryptocurrency thefts are unreported and unresolved. This is where insurance providers come in since they offer theft coverage for cryptocurrency to help you recover from your loss.
- More Bitcoin Success Means Increased Need for Insurance
With the high value of Bitcoin, it is not hard to think that criminals would target them. That is why Bitcoin investors use pseudonyms and are secretive about their Bitcoin earnings. Revealing your real identity will highly risk you to hackers. However, no matter how careful you are, there is still a possibility that criminals may take hold of your personal details.
So if you have significant success in Bitcoin investing, you are known as a high-net-worth (HNW) individual. With that, you should consider insuring your Bitcoin wallet and investments as a warranty. For sure, you don’t want to lose a considerable amount of money.
Conclusion
For now, it is still difficult to tell if Bitcoin insurance will become an industry since the number of users isn’t big enough to establish it. On the other hand, even insurance companies are hesitant since this is a high-risk type of insurance with the unpredictability of cryptocurrency. Handling claims will definitely be challenging and still needs a thorough study by both the courts and insurers.
Do you think cryptocurrency users are willing to get insurance no matter how expensive it is? Is this really an assurance of their security, or is it merely another investment?
