> What if there just isn't enough bitcoin in circulation to cover the loss (there is a 21 million cap on BTC). It's being defacto established that when a crypt

> What if there just isn't enough bitcoin in circulation to cover the loss (there is a 21 million cap on BTC). It's being defacto established that when a cryptobank gets robbed, the funds are repaid to customers using local currency, not BTC, priced at the time of the loss. So, from the underwriter's perspective, it's just insuring whatever total USD value Coinbase currently holds, with consideration given to Coinbase's ability to prevent theft. Not any different from a bank insuring itself against loss due to cybertheft.