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Why would they insure the online bitcoins, or at least--why do that without insuring the offline bitcoins? The offline bitcoins are more secure, by almost any
by mod 12y ago
Why would they insure the online bitcoins, or at least--why do that without insuring the offline bitcoins?
The offline bitcoins are more secure, by almost any measure, and so should be easier and cheaper to insure. Further, they're the overwhelming majority of the bitcoins, and a 98% loss would sure hurt worse than a 2% loss.
- drcode 12y agoProbably insurers don't have enough cryptography expertise have a hard time quantifying the difference between the two types, pricing all insured Bitcoin types in a similar way.
- hristov 12y agoInsurance prices are usually based on the maximum possible loss as well as the probability of loss. Insuring only the online bitcoins means your maximum loss is 50 times less than if you had insured all. Insurance will be much cheaper. You argue that the probability of loss of the offline bitcoins should be much smaller, but I don't think insurance companies will go along with this argument. Insurance companies are skeptical and conservative by nature. And they have absolutely no trust in human beings. And from the point of view of human intervention offline bitcoins are about as vulnerable as online ones.