Author: Aaron Voisine 2015-01-21 07:35:50
Published on: 2015-01-21T07:35:50+00:00
One of the biggest issues facing Bitcoin is the lack of insurance options. There is a need for a disaster recovery mechanism for Bitcoin, which will help address its catastrophic failure modes. Andreas Antonopoulos says that either Bitcoin will arrive on the global stage and make a substantial impact, or it will die. Bitcoin needs a strong backbone of insured storage options so that even early adopters who hold large amounts of Bitcoin can confidently participate in this new technology. A body not entirely unlike ICANN can manage the nexus to the physical world and help with Bitcoin's catastrophic failure modes. Ultimately, the only way to insure Bitcoin holdings is through an insurer who holds enough Bitcoin to cover the replacement of insured funds. This is handled through a system of re-insurance in the existing insurance industry, where smaller firms are themselves insured against catastrophic events that might cause a large number of simultaneous claims. Large Bitcoin holders find themselves uniquely positioned to engage in super-cat insurance businesses as Bitcoin grows into a major global currency.
Updated on: 2023-06-09T15:54:16.897915+00:00