It’s always a good idea to protect your investments by insuring them, e.g., house, car and health, but a new kind of insurance protects against the loss of cryptocoins such as bitcoin and others.
HashMine.io has recently leveraged that coverage for bitcoin should be raised from $250K to $500K to the Florida Department of Financial Services. Those who want to protect the bitcoin they get from bitcoin cloud mining can do so and get greater peace of mind.
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Crypto Insurance Costs
Bitcoin mining has exploded into the crypto scene and as such has enjoyed large gains. In the event of failure, such as theft, loss or a pandemic such as covid 19 bitcoin owners can insure their ‘coins for a price.
As per BitGo, there are three ways on how an insurance policy can protect the bitcoin you get from cloud mining- loss of keys, internal theft by executives or employees or third-party hacks of keys.
Coverage limit is usually limited to $250K in Florida, but due to the volatility of bitcoin and its tendency to rise to astronomical heights HashMine.io has recognized the need to increase it to $500K. The move ensures all cryptocurrency owners won’t experience great loss when they experience any of the incidents mentioned above.
The request has been forwarded to the Florida Department of Financial Services, but there isn’t a timeline on a response or a resolution. In the meantime, the covid 19 pandemic has slowed things down to a crawl with cloud mining services taking the brunt of the damage.
The Future of Cryptocurrency Insurance
As crypto coins such as bitcoin continue to get more popular and widespread people will start bitcoin mining on their own or hiring a bitcoin cloud mining to do it for them.
Insurance agencies will realize the potential of offering cryptocurrency policies. Until then, the first step should be to increase the amount to half a million dollars.
