ibn logo bar
July/Aug  Volume 29, Number 4        
 

This Just In ...

Can You Insure Bitcoins?

In spite of its growing popularity as a medium of exchange, bitcoin is not considered legal tender and is not insurable. In a 2016 Florida court case involving the transfer of stolen credit cards, the judge ruled in favor of the defendant who argued that because cyber-currency is not considered money, the charges against him should be dismissed.

Of course, one of the most important features of bitcoin technology is security. Validation of bitcoin transactions depend on a public ledger called a "block chain."

"All transactions and bitcoins issued into existence can be transparently consulted in real-time by anyone…and [all] can be made without reliance on a third party and the whole system is protected by heavily peer-reviewed cryptographic algorithms like those used for online banking. No organization or individual can control Bitcoin, and the network remains secure even if not all of its users can be trusted," according to Bitcoin.org.

As a practical matter, the only way your bitcoins could be subject to theft or loss is if someone gets your private key and hacks into your bitcoin wallet or if the wallet-provider decides to cheat you. In the first instance, even if someone got your private key (which could be vulnerable if you have a paper wallet), they would need to hack your account. The latter situation would be similar to a bank robbing you of your deposits. Careful planning will help you avoid both situations.

The only other type of theft you might suffer is if you buy something with bitcoins and the vendor doesn’t supply the goods. Bitcoin transactions can’t be reversed.

[return to top]

 
 

 

In this issue:

This Just In...

Are You Ignoring Your Cyber Liability?

What's the Future of Auto and Home Claims Handling?

Fire Prevention Safety Tips

Hurricane Preparation Tips

 

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2017 The Smarts Publishing. Tel. 877-762-7877. www.smartspublishing.com