Has anyone ever thought about starting a crypto insurance business? Like say if someone signs up for coverage and takes X amount of fiat and puts it in crypto, a person could pay per week to have their initial investment insured. Also a percentage of gains and/or trades of coins would be sent directly to the insurance. If the market crashes and you need to recoup your initial investment, a claim could be filed for the difference of what you lost and how much you put in. This way, insurance company makes bank and normies can play with crypto money without worrying too much whether or not they’ll lose everything. Of course if you file a claim, you have a pay a hefty reinstatement fee should you decide to re enter the market and resume coverage. Any thoughts on this or is this just a dumb idea?
Crypto insurance?
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There isn't really any reason why it wouldn't work
There is an insurance smart contract on ETH for if your flight gets cancelled. I believe they use oracles.
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Regulations tho, does something similar exist for the stock market?
I really like EGAS, it looks like a scamcoin but even if it is, at this price it can still go 10x before it gets dumped. check it out.
Take a look@ coinmarketcap.com
Of course there are regulations but with cryptocurrency not currently covered under FDIC or the guv mint what’s to stop the private sector from offering this sort of thing?
The risk outweighs the value. Premiums would be too high because your insurance fund would need to cover the repeated occurances of massive rip-offs to the tune of millions of dollars, vis-a-vis mt gox and bitconnect
actual insurance agencies, when they get hit by disasters like this, end up needing a government bailout. who is going to bail you out?
If it could be correctly I think it could work but I’d need a team of some venture capitalists, some engineers/programmers, linguists and lawyers.
>normies can play with crypto money without worrying too much whether or not they’ll lose everything.
good luck dodging lambo chasers' hitmen
People tried that back in the Pirateat40 days; people were selling insurance policies, which would pay out if "Pirate Savings and Loan" turned out to be a scam.
When it was revealed as a scam, the insurers were unable to pay; they had invested in pirateat40's great investment, and had figured they would have enough warning to pull coins out if it started to fail.
There would be some details to hash out for sure. But certainly the amount at risk could be reduced by keeping stringent policies to keep risk at a minimum. If you put 1000000 in fiat into an exchange and expect the insurance to cover you if you lose it all, nah bro. That premium would like 20% a week if covered at all. But if you take say 5000 and turn that into 50000 and the insurance gets a cut of that, and we only have to pay a maximum of 5000 that’s not too bad.
That’s why don’t insure anything you wouldn’t be able to pay out. You’d have to reduce the amount of risk and not make promises you can’t afford to keep. Sounds like pirateat40 shouldn’t have promised so much to so many people for money. That’s a bad service. I don’t know much about that though. I’ll research it
Insuring millions of dollars of untraceable currency. What could possibly go wrong?
Well say you were using an approved exchange and the insurance partnered with Binance. Trade history and deposit/withdrawal history are all completely visible. Burden of proof of loss would be on the insured. And most of it is traceable it’s just not easy to do. You’d definitely be sacrificing your anonymity while trading for the sake of staying covered though. Without a doubt. But if you want to trade anonymously, why would you want to be involved with an insurance company in the first place?
bump for a good idea
Tbh it's probably quite a good idea. There's a lot of risk involved though so would be expensive if it was achieved.
yes, and then you just take all the money and shut down your website and move to the cayman islands during the first big dip
Sure I'll accept your services, where do I sign for you to insure my 6 billion monero?
bitconnect admin is that you
This would not work. All claims would be made at the same time. That's precisely what you DON'T want as an insurance company.
It's a bad idea and it will not work without fucking people over and going out of business.
>Oh shit crypto insurance company i just sent 45 bitcoins to the wrong address, 45 bitcoins please.
1.) the insurance company would crash with you, so no payouts
2.) 99.9% chance they would fuck off with all the money at the time of first payout