Bitcoin risk factors for insurance

Earlier on this year, Eliptic Vault, an online Bitcoin repository a place where owners of Bitcoins can store their coins until they wish to use them announced that it would be the first fully insured Bitcoin vault. Their insurance deal was with Lloyds of London. The insurance would cover users of the vault against the loss or theft of their virtual currency.

Eliptic Vault found a new insurer in CBC insurance and their customers remained protected. Since then other Bitcoin vaults have been able to insure their deposits too — in particular Circle and Xapo have announced similar deals. On June the 2 nd , that changed.

This has been received by the virtual currency community as a very positive step. It will be interesting to see if the rest of the insurance sector now decides to come on board with additional Bitcoin protection or whether the combined risks of the regulatory environment and the intense volatility of the currency is still too much for other insurers. Bitcoin is the best known virtual currency. You can find out more about these currencies at the Crypto-Currency Market Capitalizations site.

As yet, none of these currencies has gained as much of a foothold in the market and none of them are protected by insurance. You must be logged in to post a comment.

Share with your friends. Why Has Bitcoin Become Popular? Bitcoin and the Law It would be fair to say that Bitcoin has been treated with a fair amount of hostility by national governments. Bitcoin and Volatility As you can see from the graph below; Bitcoins can gain and lose value dramatically in very short periods of time.

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