We all remember 2017 as one of the worst years for hacking cryptocurrencies. There have been reports of miner-ware installations generating millions of dollars, hacked exchanges, breaches with half a billion of losses, ICO phishing scams and a lot more filth in the crypto world.
This has turned to a cycle that is repeating ever since the first Mt. Gox breach in 2011. If you are rubbing shoulders with investors, you probably know how insecure exchanges are nowadays and how there is nothing you can do to protect yourself or your investments.
However, there is apparently something one can do as of lately. The trend has led to the emergence of cyber insurance which is essentially the fastest growing type of insurance in the United States right now. As you would guess, the cyberinsurance insures your crypto holdings and is already a ‘billion dollar market’.
The potential addition of blockchain into cyber insurance is also creating a buzz lately. On a larger scale, there may be a link between the leading exchanges and some leading insurance companies (Coinbase’s policy with Lloyds (LON:LLOY) may prove this).
At this point, the world of crypto insurance needs to mature. If it follows the steps of cyber insurance, it needs at least a year for successful adoption. However, what is needed even more is data that will refine the underwriting models of cryptoinsurance over the next couple of years.
Still, there are questions that remain. One of them is the classic cyber insurance policy – and its link to the stability of fiat currencies. The value of dollars and other fiat currencies is what tricks insurance companies here and what will probably be based on value – rather than currencies that undergo price fluctuations.
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