Bitcoin this! Terra classic that!
What’s all the buzz about cryptocurrency?
Well, A cryptocurrency is an encrypted data string– wait, wait, did you think this is just another article on cryptocurrency… blah blah? Guess what? It’s not! Let me throw some alarming instances at you. More like facts!
Firstly, 615 million USD have disappeared after a security breach in the ronin network, an Ethereum-based side-chain, just after temporarily lowering security protocols.
Here’s another, a charity token Orfano, claimed not only to be a crypto investment but also to be a part of the philanthropic drive with 3 percent set aside. The creator of this charity token closed down his firm and disappeared. This scam makes me think that the world is a naive place because next came Orfano, which managed to scam the world as a whole.
Lastly, Seth Green, the creator of the robot chicken, fell for a phishing scam in may of 2022, losing more than hundreds of thousand of dollars.
I wouldn’t convince you to put your money in cryptocurrencies as it would be baseless. Here comes the crux – what if you have insurance? Similar to other conventional assets, if I may say centralized assets.
There may be few companies offering insurance, but considering that this concept is relatively new, as and when crypto solidifies and legitimizes itself, so will the rise of insurers for the same.
Cryptocurrency insurance refers to insurance products that cover cryptocurrency investments or transaction losses. This type of insurance may cover losses from cyber attacks, theft, or fraud. Some policies may also provide coverage for losses resulting from market fluctuations or different types of financial risk. It is essential to carefully review the terms of any cryptocurrency insurance policy before purchasing it, as coverage may vary significantly between policies and may not be available in all countries.
Some companies moving into this pool, for instance, intelligent contracts chain link, personal coverage coin cover, peer-to-peer insurance Teambrella, and many more the market may be small but growing exponentially for apparent reasons of growing crypto transaction, transparent regulations, growth of Defi and a more significant number of digital assets.
The insurance sector still has a ways to go before it can provide consumers with reliable, cost-effective coverage that will replace lost cryptocurrency investments. There are too many problems to address with crypto, but no one company has been able to cover all the loopholes in the system. An obvious suggestion would be to go for a combination of these to get crypto investors all covered.
