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I’m not convinced that bitcoin is stable enough to use in insurance products. The currency volatility risk is too high to reasonably cover the covered losses w
by daft_pink 5mo ago
I’m not convinced that bitcoin is stable enough to use in insurance products. The currency volatility risk is too high to reasonably cover the covered losses which will need to be covered in some other currency to do things like replace boats etc.
- asdff 5mo agoThe volatility is only an issue if you need to convert the bitcoin in the near future. If you are willing to wait, volatility goes in your advantage. Bitcoin is volatile enough that if you wait for maybe a few years you will probably hit a pump that will far exceed the growth of most other investments. You don't even need to sell at the high to do this, the run up is often plenty enough gain.
- tencentshill 5mo agoThey were charging 0BTC per ship before, so they come out ahead no matter the current value of the coin. They can change their fees by the day as well.
- cpncrunch 5mo agoThis isnt an insurance product though. Its “insurance”, aka extortion.
- ProllyInfamous 5mo ago...it's the same picture.
- daft_pink 5mo agoI see. I misunderstood
- jt2190 5mo agoNo, it’s actual insurance: > Iran has started a Bitcoin-backed insurance service for Iranian shipping companies that want to transit the Strait of Hormuz, the semi-official Fars news agency reported, citing documents obtained from the country’s Ministry of Economy and Financial Affairs. > According to a screen shot of the insurance company’s website, dubbed Hormuz Safe and shared by Fars news, it “provides Iranian shipping companies and cargo owners with fast, verifiable digital insurance.” Fars didn’t give a detailed break down of how the insurance works and whether it’s available to foreign shipping companies and vessels.
- f33d5173 5mo agoThat appears to be a long winded description of extortion under the cover of insurance, like the gp said